There is no "silver bullet" to help reduce repossessions and the solutions to the problems faced by struggling homeowners must come in a num…
There is no "silver bullet" to help reduce repossessions and the solutions to the problems faced by struggling homeowners must come in a number of forms, an expert has argued.
This claim came from Building Societies Association (BSA) head of mortgage policy Paul Broadhead, after the organisation published a report entitled A joined-up approach to helping mortgage borrowers, calling for a more varied and wide-ranging response by the government to the difficulties some homeowners face.
According to the BSA, one of the things ministers should consider is an extension of Support for Mortgage Interest help, while also encouraging the take-up of mortgage protection insurance for those who may find events like redundancy remove their capacity to pay their home loans.
More clarity on homeowner options on the levels of forbearance separately available for first charge, second charge and unsecured lending is needed too, it argued, suggesting the current lack of guidance causes confusion.
"Consumers get into difficulty meeting their mortgage repayments for a variety of reasons, in many cases it is caused by an unexpected life event, such as job loss or relationship breakdown," Mr Broadhead stated.
The BSA is showcasing its report at the political party conferences in an attempt to influence government policy.
Taking an interest-only mortgage may be a good option for homeowners who are struggling, editor at What Mortgage Ben Wilkie noted recently.
He said this can be very cheap because the present base rate is at a record low, meaning the level of payments will be easy for most to manage.
By James Francis