Officials offer advice on mortgage arrears
March 19, 2009 by admin
Filed under News, News-Mortgages
A recent report has shown that many homeowners in Scotland are struggling to keep on top of their mortgage repayments, and figures from the Financial Services Authority have shown that at the end of the third quarter of last year there were around 340,000 homeowners in Scotland that were in arrears. This was around 24 percent higher than the same period in the previous year.
Industry officials have warned that as the recession bites deeper and more people start to lose their jobs the number of people in arrears is likely to continue rising, and this could cause greater problems. However, an official from the housing charity, Shelter Scotland, said that those in arrears, or in danger of falling into arrears, should take action quickly as something can be done if action is taken swiftly enough.
He said that anyone falling behind with repayments should speak to their lender right away and if necessary seek professional advice. He said: “Seeking advice early could be the key to avoiding a crisis if you are facing eviction or struggling to pay your mortgage. The earlier you take action, the better the chance of staying in your home. No-one with financial problems should bury their head in the sand.”
In the current financial climate lenders are more likely to be sympathetic to people in this situation, according to officials, and some have already extended the time given before they start repossession proceedings. Some may also be happy to modify the mortgage loan on a temporary or permanent basis to make it easier for the borrower to meet repayments, but this does depend on the lender.
Tags: something, recent report, housing charity, mortgage arrears, professional advice, Mortgages, Mortgage repossession, scotland