Advice given for mortgage holders in difficulty

Date:Wednesday 18th February 2009
Author: Rachel Fletcher

A number of organisations have issued advice for mortgage holders who are struggling financially.

The Council of Mortgage Lenders (CML), homeless charity Shelter and Citizens Advice released the information jointly, urging troubled borrowers to take action quickly.

People were urged to pay as much as they could to help develop an agreement with their lenders and not to return the keys and leave, as they are still accountable for the debt.

Anyone in difficulty was advised to talk to their lender as soon as possible and approach organisations such as Citizens Advice to receive free help.

If court proceedings are begun, borrowers should go, as this makes it more probable that a deal will be made that will avoid eviction.

The CML recently reported that in 2008, there were 516,000 loans made for house purchases.

This was the lowest activity level since 1974 and marked a drop of 49 per cent from 2007's statistic.