Monday 17th of August 2009
Mortgage arrear charges continue to hit the coffers of already struggling households, it has been revealed.
Some Britons may currently find it difficult to meet their mortgage commitments because of climbing unsecured debt such as store and credit cards, although individual voluntary arrangements (IVAs) could help meet these expenditures.
According to moneysupermarket.com, borrowers are being hit with "callous" fees.
These include charges for every call a lender makes or letter they send.
When important mortgage repayments are at risk of being - or are being - missed, IVA advice could help homeowners make sure their other financial commitments do not get in the way.
"Obviously lenders aren’t charities, but no-one wins if they continue to burden customers with more fees and debt," said Hannah Skenfield, mortgage channel manager at moneysupermarket.com.
It has also been reported by Moneyextra.com that mortgage repayments could be reduced by downsizing a property, with over half of homeowners admitting they are struggling with debt.
By Mark Waterman
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Holidaymakers could pay off summer debts with an IVA
