Borrowers in difficulty 'must talk to lenders'

Borrowers who could struggle to make mortgage repayments must talk to lenders if they think they are going to have problems, according to an industry body.

The Council of Mortgage Lenders'' (CML''s) spokesperson Bernard Clarke has stated that home loan providers have a range of options to help people, adding that even more can be available if consumers take to the firms at the earliest opportunity.

He explained: "They might consider re-scheduling the loan, and there are possibilities for extending the term of the loan which could reduce payments.

"All of these will depend on what''s suitable in the individual’s circumstances, the lender and the borrower need to sit down and work out a plan that fits the individual’s circumstances."

Mr Clarke added that lenders would also explore all other options before approaching the issue of repossession.

Representing around 98 per cent of the sector, the CML is the UK''s leading trade association for the residential mortgage lending industry.

Figures from the organisation recently revealed that gross mortgage lending reached £25.3 billion in April.

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