Missed payments ‘a costly mistake’

Inconsistency amongst mortgage lenders regarding missed payments, could result in fees of up to £50, according to a survey by moneysupermarket.com.

Those already in debt could be interested to know that the fees range from £50, charged by GMAC, to HSBC who charge nothing for missed payments or clear debt
counselling.

Some banks charged extra money for falling into arrears with mortgage payments, or when a direct debit or cheque is returned.

Head of mortgages at moneysupermarket.com Louise Cuming warned: “I’m sure customers in arrears are unaware that most lenders charge for every call they make and letter they send.”

Consumers who have missed payments and found debt spiralling because of the confusing range of fees should seek debt advice and could consider an Individual Voluntary Arrangement (IVA) for severe debt problems.

Research by uswitch.com has shown that customers in the UK could save £15 billion through debt consolidation, with tools such as IVAs.