Many consumers 'failing to get help when struggling with mortgages'

Date:Tuesday 7th July 2009
Author: Max Freedman

A considerable number of consumers in the UK are failing to seek advice when they fall into difficulties repaying their mortgages, new research suggests.

Conducted by the Financial Services Consumers Panel (FSCP), the study discovered that nearly half of people with such problems do not attempt to get advice.

This is despite the fact that seven out of ten of homeowners struggling with home loan payments considered their difficulties to be serious.

Meanwhile, of those who did seek advice, 65 per cent went to their mortgage lender, while a quarter went to Citizens Advice.

Responding to the figures, FSCP chairman Adam Phillips said that when consumers get into problems they need constructive help and advice on how to proceed.

He added: "Mortgage lenders have a duty under the principle of Treating Customers Fairly both to help their customers in arrears and also to tell them about independent sources of advice."

The FSCP was established and is funded by the Financial Services Authority, but it is run on an independent basis.