The hotline offers free advice to callers who are struggling or behind with their mortgage repayments, or facing a possession order.

Whilst welcoming recent government action and CML policy initiatives to improve management of the mortgage arrears process, Payplan does not believe that sufficient emphasis has been given to addressing the wider debt problems of people in mortgage arrears.

People with mortgage problems are often reluctant to admit to their lender that they have other debts.  Unless lenders are fully aware of their customers’ financial situations, many of the strategies being promoted - such as payment breaks and capitalisation of arrears – may only serve to delay an inevitable decline into further arrears.

On average, people calling Payplan for help with mortgage arrears also owe £42,500 to unsecured creditors, and in most cases they haven’t informed their mortgage lender.  Debt advisers at Payplan regularly see people making the mistake of prioritising credit card debt repayments over more important debts, such as their mortgage – which could put the security of their home at risk.

“Sadly, many people fear that telling their mortgage lender about other debts will put their house at greater risk. The reality is that acknowledging these debts and putting in place an appropriate strategy for dealing with them nearly always solves the mortgage payment problem,” says Payplan Managing Director John Fairhurst.

“Our team speaks daily to people with mortgage arrears and many of these individuals and families are scared that they will lose their homes. Our team is able to ease the worries of callers and help them re-structure both their secured and unsecured debts, enabling them to keep the roof over their heads.”

People worried about speaking to their mortgage lender can get free, impartial and confidential advice about their situation from debt advice organisations such as Payplan. This allows them to get informed advice about their situation, without the worry of being forced down a route that may be damaging for them.

The Payplan Mortgage Arrears hotline is 0800 917 7819.
 
 
 

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