1 Oct

Struggling homeowners 'should speak to their lenders'

Struggling homeowners 'should speak to their lenders'

Those struggling with mortgage repayments should speak to their lenders straight away, according to one industry expert.

Catherine Torazzo from registered charity Citizen's Advice said that lenders usually provide an understanding and constructive response to problems, helping their customers come to a manageable solution.

Her comments follow an announcement by housing minister John Healey that - under new rules due to come into place today - local councils will be informed when lenders begin any repossession action.

"Reminding lenders that they need to follow the pre-action protocol for mortgage arrears will, we hope, reinforce the fact that repossession needs to be a last resort," stated Ms Torazzo.

She added that more options will be available to homeowners who quickly engage with any repayment difficulties.

This news comes after recently-published mortgage lending figures from the Financial Services Authority revealed that the number of home repossessions fell by nine per cent in the second quarter of 2009.

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