Lenders should support borrowers in difficulties

Published: December 13, 2007

Mortgage lenders and intermediaries should do as much as possible to help homeowners experiencing difficulties as they come to the end of their current fixed term mortgages, an industry association has argued.

Borrowers may find the increased repayments required by any new mortgage deal to be a shock, creating financial strain, explained Chris Cummings, director-general of the Association of Mortgage Intermediaries.

It is the responsibility of the mortgage industry, he claimed, to help people find the best deals possible and assist them in avoiding unmanageable debt and possible repossession.

"Lenders and Mortgage Intermediaries, working together, have a role to play in supporting clients and we should do all we can to prevent them entering into financial hardship and potential home repossession," Mr Cummings said.

"As an industry we do not want to return to a culture of unmanageable debt and home repossession, which would have a negative effect on consumer confidence and the wider economy," he added.

According to figures published by the Financial Services Authority, as many as 1.4 million people are set to come to the end of their fixed rate mortgages next year.