Seek debt help early, homeowners advised

Borrowers have been urged to seek debt advice if they fear they may struggle to repay mortgages and other loans.

Louise Cuming, head of mortgages at moneysupermarket.com, explained that acting quickly is important if a consumer is to become debt free.

She was commenting after Council of Mortgage Lenders statistics indicated that repossessions are increasing, but not as sharply as had been predicted.

According to Ms Cuming, low interest rates are helping consumers to repay their debt, while lenders are working with borrowers to ensure they are able to stay in their homes.

“Seeking help early on is always the best policy,” she said. “Many people in dire financial straits may still hope that if they ignore the problem it will go away, but it won’t.”

Recent figures from the Finance and Leasing Association also indicated that lenders are attempting to minimise repossessions, with data for the first quarter of the year showing little change from 2008 despite the increase in difficulties.