27 Oct

Talk to lenders, homeowners urged

Talk to lenders, homeowners urged

Those having difficulties with mortgages should be very quick to contact their lender, it has been suggested.

Al Elliot, an advisor at the Homeowners Advice Centre, stated: "I would recommend talking to your lender sooner rather than later about swapping to interest only payments."

He noted this is important because mortgage providers are less likely to be willing to switch terms if a mortgage is in arrears.

Mr Elliot also said those with mortgages should assume they will not be able to remortgage and prepare to meet the standard variable rate payments in case this is what happens.

Such comments come after the government introduced new measures last week aimed at protecting those with mortgages who have problems.

The plan is to achieve this by placing an obligation on lenders to prove they have sought to resolve difficulties with the customer prior to any repossession action taking place.

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