CML welcomes mortgage information campaign

09/09/2009

A new government information campaign aimed at helping homeowners facing a struggle to meet their mortgage repayments has been welcomed by the Council of Mortgage Lenders (CML).

The national scheme, which is supported by organisations including the National Debtline, Shelter and Citizens Advice, offers tips on getting on top of payment problems and urges borrowers not to ignore the problem if their household budget is becoming stretched.

CML director-general Michael Coogan said people who are worried about the possibility of missing a mortgage payment should contact their lender "at the earliest possible opportunity".

"Most customers who are committed to resolving their problems and working with their lender can successfully manage their way through a period of short-term payment difficulty and avoid possession," he commented.

According to the government's Mortgage Help service, at least 116,000 households in the UK currently have arrangements such as reduced payment, extended loan terms or payment holidays in place with their mortgage lender.

"EuroDebt sees many homeowners in financial difficulty and over one in five those that enter a Debt Management Plan have mortgage arrears," said EuroDebt director Kevin Still.

"These homeowners also have, on average, over £35,000 of unsecured debts with credit cards and personal loans.

"It is important to establish a viable repayment arrangement to clear mortgage and secured loan arrears, as well as establishing a fair arrangement with the unsecured creditors.

"Many homeowners may want to re-mortgage or downsize at some point in the future and ensuring that their credit file reflects that they have taken a responsible attitude to their debts is essential, as this may pay dividends in two to three years' time."

Tags; Housing Debt and Bills, Young Family Finances, Credit Card Lifestyle,

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