Mortgage repayment requires personal responsibility

While lenders must take a compassionate attitude towards homeowners experiencing difficulties in keeping up with mortgage repayments, borrowers must ensure they are, as much as possible, capable of meeting their obligations, according to the Intermediary Mortgage Lenders Association (IMLA).
Acknowledging that borrowers can face unexpected financial hardship, the IMLA highlighted lenders' general willingness to work with those struggling to keep up with their commitments and avoid taking possession of a property.
"Inevitably, in a market as large as ours, there are occasions where borrowers have taken on a mortgage or other secured loan that proves to be unaffordable or only marginally affordable, and where a payment shock or other change in circumstances makes it difficult for them to pay," IMLA executive director, Peter Williams, said.
"It is also a matter of personal responsibility. Borrowers do need to read the small print, consider their financial position carefully and make sure they will be able to meet their obligations even if their financial position should deteriorate temporarily in the future," he added.
Mr Williams also added his voice to the calls from the Council of Mortgage Lenders for an overhaul of the government's Income Support for Mortgage Interest system.

Related Articles
HomeBuy Direct offers housing hopeLenders make house price crash worse
Banks Squeal Under Government Pressure
Rate cuts have limited success
Two year fixed rates tumble
Latest News:
HomeBuy Direct offers housing hope
As Christmas approaches, there could be the tiniest glimmer of hope for the housing market...
Published: 16-Dec-2008
Lenders make house price crash worse
According to the Royal Institute of Chartered Surveyors, it is the banks and mortgage lend...
Published: 10-Dec-2008
Banks Squeal Under Government Pressure
In a report published yesterday, the Council of Mortgage Lenders has tried to fight back a...
Published: 10-Dec-2008
Rate cuts have limited success
The Council of Mortgage Lenders have released statistics showing a slight increase in the ...
Published: 20-Nov-2008



