Borrowers beware of falling into home arrears
THE Financial Conduct Authority warned last week that they felt some lenders weren’t doing as well as they could be for mortgage borrowers who fall into arrears.
This is a vulnerable time of the year for people on a tight budget and it’s really important lenders do what they can to help those borrowers who fall behind.
The FCA was concerned that some lenders are leaving borrowers to complete complicated arrears forms on their own, and that they were also taking an inconsistent approach to the way they dealt with arrears.
Both of these practices will add unnecessary stress on borrowers who are already struggling to get their payments up to date. It’s important that these failings are addressed as soon as possible and certainly before we start to see any real increases in interest rates.
Borrowers have been insulated in recent years because interest rates have been so low, and even those falling into arrears have seen these arrears rise quite slowly compared with the position nine or 10 years ago.
But any rises in interest rates in 2019 will see arrears increase more quickly, and this will put even more pressure on those who can’t make payments on time.
It’s also really important that borrowers who are in arrears, or who think they are going to be unable to keep up with mortgage payments, contact their lenders as soon as possible.
It’s easier for a lender to help someone who calls to say they might not be able to afford next month’s mortgage payment than someone who hasn’t made a mortgage payment for six months.
● If you think you’re having difficulty making mortgage payments, call your lender immediately. ● Don’t leave valuables lying in the back seat of your car at this time of the year.