FSA support for remortgagers
Recent research from the Financial Services Authority (FSA) indicates that one in five UK households is experiencing difficulties in meeting mortgage repayments.
The situation is likely to worsen throughout 2008 because around 1.4 million homeowners will be coming to the end of their fixed-rate loans.
This group is likely to see their monthly repayments increase significantly, despite recent cuts in interest rates.
The FSA is responding their plight with the launch of a £2 million advertising campaign aimed at helping people secure the best mortgage deal for their circumstances.
Chris Pond, FSA director of financial capability, says: “Economic conditions are getting tougher, putting pressure on family finances … as the UK’s financial watchdog we can help. Our new checklist sets out simple steps that homeowners can take to manage their money and mortgage in difficult times.”
His advice to those in serious financial difficulties is “don’t panic”, rather “talk to your lender or get free, confidential debt advice”.
Twenty per-cent of respondents to the FSA survey said they have no idea what they will do if they run into serious financial difficulties.