Borrowers 'must act now on mortgages'

Borrowers in the UK have been urged to act now to avoid problems further down the line with their mortgages.

The head of personal finance for Fool.co.uk, David Kuo, has stated that homeowners could benefit from making small overpayments of around £3 on their mortgage in order to reduce their loan-to-value (LTV).

According to the expert, by having an LTV of less than 90 per cent people can avoid being forced on to standard variable rate mortgages.

However, he went on to explain that if house prices continue to fall, more extreme savings may need to be made.

"Extreme savings are required when times are hard. But hard times come and go," he said.

"If your resolve weakens, just ask yourself if it''s more relaxing paying to watch repeats on cable television or knowing that you can afford to pay your mortgage."

The Council of Mortgage Lenders'' spokesperson Bernard Clarke recently urged borrowers who feel they may struggle to make repayments to contact their provider as soon as possible.

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