Struggling borrowers should talk to their lender

As borrowing costs increase and household bills soar, homeowners struggling to meet mortgage payments should consult their lender, an industry expert has said.

The Council of Mortgage Lenders (CML) has advised borrowers to seek advice if they think they may end up in arrears, rather than wait until they have missed payments.

Bernard Clarke, spokesperson for CML, commented that there are different solutions available to help those that have got into difficulty.

Mr Clarke said: "Lenders have a range of options to help people depending on their circumstances and the range of options available is widest if the borrower talks to the lender at the earliest opportunity."

Although the credit crunch is affecting consumer confidence, research shows that concern over an unstable economic climate does not necessarily translate to prudent behaviour.

Research from insurance company AXA has found that, of the 90 per cent of single earner families in the UK that have mortgages, only 16 per cent of them have insurance to cover their mortgage repayments.

Mortgages News posted on 30/05/2008 17:19:30