Early Redemption Charges
A mortgage company has urged lenders to think about cancelling Early Redemption Charges for those in arrears, trying to stop the increase in the number of repossessions taking place every year.
Research has shown that there are around 30,000 customers who have “mortgage trouble” and this is only leading to that increase. The increase in the interest rates means that more and more people are falling behind in mortgage repayments faster than previously.
Falling into arrears leaves the homeowner with only three possible options – they can carry on not paying, they can attempt to pay or they can try and organise their finances and remortgage. However if the homeowner chooses to do so they will more than likely end up paying their Early Redemption Charges which can cost anywhere form 6-10,000, leaving the vendor stuck in a particularly unpleasant situation, knowing that they will never make a profit on their property if they choose to sell.
This particular mortgage company has suggested that getting rid of the Early Redemption Charges could help to solve many repossession problems.
If you feel that you are falling into arrears and can see no way out then call us free on 0800 0122334.