Don’t hesitate to get help with mortgage debt

Housing and homelessness charity Shelter and the Council of Mortgage Lenders (CML) wrote a joint letter to the new government, calling for an extension to current support measures for borrowers in significant financial difficulty.

Shelter said that although repossessions had fallen in the first quarter of this year, this would be largely due to the unusually low interest rates seen over the last few months, which could rise in the near future.

A debt expert at Think Money said:

"Despite improvements in the economy, there are still a lot of people struggling with debt, many of whom are facing the prospect of losing their homes. We welcome the suggestion that support for these people should be extended.

"However, we would advise anyone struggling with their debts not to wait and see how the government can help them, but to take action now and seek expert advice on how to improve their situation.

"In many cases, the problem may not be the mortgage debt in itself, but other financial pressures that are making their mortgage payments unaffordable. If that involves other debts, then the borrower could benefit from a debt solution that can help to reduce their outgoings, such as a debt management plan.

"If that doesn’t help, a debt adviser can still recommend the best course of action for dealing with unaffordable mortgage payments, and could help the homeowner to come to some kind of agreement with their mortgage lender."

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