Treasury Committee concerned over mortgage arrears
Monday 10th August 2009
Her Majesties Treasury Committee has called for banks and the Financial Services Authority to ensure homeowners are not facing unfair charges on mortgages .
Revealed in the Mortgage Arrears and Access to Mortgage Finance report, repossession and debts are still on the rise, whilst sub-prime, specialist and second charge lenders are continuing to make this situation worse.
In recent months as unemployment has grown and people are living off ever tighter budgets, many lenders charges are beyond what is left in these peoples kitty’s, this can lead to a vicious cycle of mortgage arrears and charges which the borrower may never be able to escape.
chairman of the Committee, John McFall, said: "We have heard evidence of charges as high as £35 from some lenders for simply sending a letter or making a phone call, and charges as high as £150 for a visit from a so-called 'debt counsellor'."
Nationwide Building Society evidently did not receive the call down the line; recently introducing a new mortgage to the market with a loan-to-value of 125 per cent, despite the risks associated with such lending .