Homeowners urged to seek debt help

Homeowners who have been having difficulty with debt management have been encouraged to contact lenders.

Discussing problems as early as possible with mortgage providers means that arrangements can probably be made, according to Al Elliot from the Homeowners Advice Centre.

He stated: “If you are on a repayment mortgage, then they may allow you to temporarily move to interest only, thus reducing the amount due each month.”

People who can make payments slightly above the interest-only level may be more likely to be offered this debt help links measure, he suggested.

Mr Elliot noted that the government has made efforts recently to tackle the number of repossessions, but warned that lenders must be made to treat all borrowers fairly.

He argued that some companies could be “relentlessly pursuing outstanding payments” if they are also experiencing money issues.

It comes after a Council of Mortgage Lenders report showed that first-charge lenders made 12,800 repossessions in the first quarter of this year.

By Jamie Price