Lenders should act responsibly with rising borrowing costs

Published: December 11, 2007

The leader of the Conservative Party, David Cameron, has called on mortgage lenders to exercise leniency when dealing with homeowners who struggle to meet their monthly repayments.

He told the BBC that bank and other lenders should take measures to help people who are set to come to the end of their existing fixed term mortgages.

In addition he called on organisations to offer advice and the switching of some homeowners to interest free loans, claiming lenders must learn lessons from their previous actions.

"I believe in something called social responsibility: rather than just always seeking a regulatory answer," Mr Cameron told the website.

"We should be asking banks and building societies who are responsible organisations, to act responsibly, to learn from each other and to make sure they do everything they can," he added.

A total of 1.4 million homeowners are due to see their fixed term mortgages expire next year, with the Financial ServicesAuthority last week warning that borrowers could struggle to find an affordable new deal.