Struggling with the mortgage? Talk to your lender, because burying your head in the sand could mean your home is repossessed
Homeowners who are struggling to pay their mortgages as interest rates rise are being urged to speak to their lender sooner rather than later.
Burying their heads in the sand could put them on the road to having their home repossessed.
Home repossessions have almost doubled this year due to a combination of soaring household bills and mortgage rates jumping in response to the Bank of England base rate rising to 3 per cent.
Struggle: Home repossessions have almost doubled this year due to a combination of soaring household bills and mortgage rates jumping
Lenders now have a regulatory duty to help customers who are struggling to pay their home loans – and repossession is only considered if all other options fail.
Richard Lane, a director at debt charity StepChange, says: ‘If you are struggling to meet your mortgage payments, contact your lender straight away – before you start defaulting on payments. Lenders have a responsibility to treat borrowers fairly and may be able to offer practical help – such as rescheduling payments to make them more affordable.’
For those fearful about contacting their bank or building society, StepChange offers free impartial advice.
Between July and September this year, there were 744 home repossessions in England and Wales – 90 per cent more than the same period last year, according to data compiled by the Ministry of Justice.
For more information on debt support, go to stepchange.org.