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Late Mortgage repayments leading to arrears

30/01/2008

A new report suggests that late mortgage repayments are leading to mortgage arrears.

After analysing facts and figures from 18 different leading mortgage lenders, moneysupermarket.com the price comparison website found out that lenders such as Northern Rock and BM Solutions gave one month's grace for a missed payment, however GMAC charged £50.

In the mortgage arrears department, HSBC has top rankings. This is simply due to because they have no charges for HSBC customers for missed payments.

Head of mortgages at moneysupermarket.com, Louise Cuming commented: "Many lenders are quick to agree on a mortgage, but not so eager to help financially when their customer is most in need. Charging someone £372 is equivalent to raising the annual SVR rate on a £150,000 mortgage from 7.5 per cent to 8.49 per cent.

"The biggest outrage is that so many lenders charge for or outsource debt counselling, yet it is free with the Citizens Advice Bureau. Customers in arrears should ask their lender to waive these fees and remind them that HSBC doesn't make these charges."

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