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Struggling with the mortgage? Talk to your lender: if you bury your head in the sand, you could be on your way to repossession
Homeowners who struggle to pay their mortgages when interest rates rise are urged to talk to their lender sooner or later.
By burying their heads in the sand, they could be on their way to regain possession of their home.
Home repossessions have nearly doubled this year due to a combination of rising household bills and mortgage rates skyrocketing in response to the Bank of England’s key rate hike to 3 percent.
Struggle: Home repossessions nearly doubled this year due to a combination of rising household bills and rising mortgage rates
Lenders now have a regulatory obligation to help customers struggling to pay their home loans – and repossession is only considered if all other options fail.
Richard Lane, director of StepChange, a charity, says: ‘If you’re having trouble meeting your mortgage payments, contact your lender immediately – before you default on any payments. Lenders have a responsibility to treat borrowers fairly and may be able to provide practical assistance, such as rescheduling payments to make them more affordable.”
For those who are afraid to contact their bank or mortgage lender, StepChange offers free impartial advice.
Between July and September this year, there were 744 home repossessions in England and Wales – 90 percent more than in the same period last year, according to data collected by the Department of Justice.
For more information about debt counseling, please visit: stepchange.org.