"Outrageous" arrears fees slammed by site

12/08/2009

Extra fees and charges levied by banks on homeowners having trouble with their mortgage costs faced fierce criticism yesterday.

Moneysupermarket.com said that the arrears fees are notably "high" and worsen many peoples' financial problems.

The financial website also termed the current situation "outrageous" and a "bitter pill" for Britain's homeowners to swallow.

Repossessions have been rising in the UK over recent months as the credit crunch continues to make it hard to secure a cheap mortgage.

Around 40,000 homes were lost in this way last year - a figure that seems set to rise to 65,000 in 2009.

Moneysupermarket.com said that banks were currently charging up to £35 a time for returned cheques, up to £50 for the first month of a homeowner falling into arrears and up to £100 to provide debt counselling.

The site added: "Obviously lenders aren't charities, but no one wins if they continue to burden customers with more fees and debt. I'm sure many of those in arrears are completely unaware that some lenders charge for every call they make and letter they send.

"It's outrageous that borrowers who are already struggling and who have fallen behind with their mortgage repayments are being hit with such high fees."

Tags; Housing Debt and Bills, Young Family Finances,

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