Consumers struggling with mortgage repayments should talk to lender
Consumers struggling with mortgage repayments should talk to lender
- Wednesday, 24 November 2010Consumers with
debt problems who are struggling to pay their mortgages should talk to their lenders to try and resolve the issue.
That is the opinion of Chris Jenkins, creative director at Dallas Matthews, which is a Manchester-based digital marketing agency.
He said: "My advice to borrowers would be to always talk to your lender, even if your 'debt' is relatively small. This will reflect much more favourably on your case if the matter ever does go to court."
People in mortgage arrears could be called to court if the lender decides to impose a charging order on unpaid debt.
It is legitimate and can turn unsecured debts into secure ones, meaning that if they are not paid a person could lose their home.
The Office of Fair Trading (OFT) reported on November 22nd that it had imposed requirements on six lenders to address concerns surrounding these court orders, called a charging order.
Mr Jenkins commented: "Lenders need to make an effort to try to judge each case on its own merit and take into account things like payment history and current situation."
Hopefully those living with
debt problems will be protected from these charging orders following the warning issued by the OFT.

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