Mortgage repayment help offered by FSA
Mortgage repayments worry 1 in 5 mortgage holders according to the latest figures from the FSA. Their survey reveals that, of those with concerns about meeting repayments over the next 12 months, 25 percent had no plans on how they would meet these costs.
A particular worry are homeowners whose fixed rate or discount deals end this year. The FSA has launched a campaign aimed at the 1.4 million short term fixed rate mortgage holders whose deals are ending. It intends to help them make informed financial decisions and, it is claimed, will also help find the best mortgage for them.
Director of Financial Capability for the FSA had advice for those having problems now saying “don’t panic. Talk to your lender or get free, confidential debt advice”.
There are specific areas of help and advice offered by the new FSA campaign. They have published a “Stay in control of your mortgage” check list to help homeowners having a difficult time managing their money and their mortgage. It will also be useful for those anticipating difficulty with mortgage repayments in the future.
The check list recommends mortgage holders:
- check their budget and think about how they would deal with increases in repayments
- start planning by talking to lenders
- Get help if they’ve fallen behind with mortgage repayments by contacting the lender and getting free help from an independent debt advice agency.
The FSA will also provide a free service allowing people to compare mortgage deals. There were initial concerns voiced by some financial advisers that the service, part of the Moneymadeclear range, would provide unfair competition. The FSA have stated that the service arises from a recent recommendation that they offer free, impartial information on money issues.
The survey revealed that more than half a million have done nothing about their fears of falling behind with mortgage repayments, even though they risk losing their home. The new service from the FSA may be of some help although not everyone will find a solution to their problem. They also offer a consumer helpline on 0845 606 1234 .
