Struggling with the mortgage? Talk to your lender: Sticking your head in the sand could put you on the path to repossessing your home
Homeowners who are struggling to pay their mortgage as interest rates rise are encouraged to speak to their lender as soon as possible.
Burying their head in the sand could put them on the path to repossessing their home.
Home repossessions have nearly doubled this year due to a combination of rising household bills and rising mortgage rates in response to the Bank of England’s base rate hike to 3%.
Struggle: Home foreclosures have nearly doubled this year due to a combination of rising household bills and rising mortgage rates
Lenders now have a regulatory obligation to help customers who are struggling to repay their home loans – and repossession is only considered if all other options fail.
Richard Lane, director of debt charity StepChange, says: ‘If you’re having trouble meeting your mortgage payments, contact your lender straight away – before you start failing to pay. 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 worried about contacting their bank or building society, StepChange offers free impartial advice.
Between July and September this year, there were 744 home foreclosures in England and Wales, 90% more than the same period last year, according to data compiled by the Department of Justice .
For more information on debt support, go to stepchange.org.