Remortgaging homeowners set for new help
The UK's 1.4 million homeowners seeing their fixed-rate mortgage deals expiring in 2008 and facing a repayment shock are set to get new help.
The Council of Mortgage Lenders (CML) is to work with the charity Money Advice Trust in order to provide a new advice service to help prevent people reaching financial crisis point.
The Money Advice Trust's chief executive, Joanna Elson, explained the initiative would provide early advice for borrowers coming off fixed rate deals and highlight the independent and free confidential services such as Citizens Advice, Business Debtline, National Debtline and the Consumer Credit Counselling Service.
"Our experience suggests that if you do get into difficulty, seeking free independent advice as soon as possible is the best option to help you sort out your problems," said Ms Elson.
"There is always something that can be done and the earlier you seek advice the more options you will have."
So far this year the National Debtline has recorded a 16 per cent rise in enquiries as borrowers find higher interest rates are placing them under greater pressures.
Michael Coogan, director general of the CML, who said: "A large number of borrowers are likely to see their mortgage costs rise when their fixed-rate deals expire this year.
"We may be past the peak of the 'payment shock' this will produce, but market conditions remain uncertain and borrowing costs are continuing to rise."
The Money Advice Trust advises those coming to the close of fixed-rate deals to speak to their current lender to see what will happen to their repayments and see what better deals they and other mortgage lenders have.
