Homeowners can approach lenders over payment problems

Homeowners should do everything possible to keep up with mortgage repayments in the face of fluctuating interest rates but can consider approaching their lender before missing a payment, a leading industry figure has suggested.

Figures released recently by the Council of Mortgage Lenders (CML) revealed that, in the face of tight economic pressures in the UK, possession rates had risen by nearly 18 per cent in the first half of 2007.

Mark Lance, a spokesperson for the Repossession Specialist, has said that homeowners should be aware of how possible changes in the Bank of England's base rate may affect their financial situation, but that some lenders may be receptive to their difficulties if approached in advance of a missed payment.

"Homeowners must ensure their mortgage is the highest financial priority even whilst the base rate increases or decreases.

"[They] should proactively approach their lender, before the first missed payment if possible. The level of sympathy depends on the lender and their arrears policy.

Mr Lance also warned, however, that "many lenders aren't as sympathetic as they should be".

The CML's recent figures equate to approximately one in every 840 UK homes ending up in repossession in the opening six months of 2007.

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