The seventh largest mortgage lender in Britain, UK Asset Resolution (UKAR), has said that it has begun to contact an estimated 20,000 customers who may begin to struggle to maintain their mortgage repayments should the widely anticipated rate increase come to fruition.
UKAR was established in 2010 as a result of the financial crisis and now hold the loans of the collapsed lenders Northern Rock and Bradford & Bingley. It has already taken steps in assisting their customers already in arrears by working towards a repayment solution, reduced those in arrears by at least 3 months by 65%.
Chief Executive of UKAR, Richard Banks, said:
“If interest rates increase by 1 percent we would estimate that potentially around 20,000 customers might have problems.”
UKAR has also been discussing options with high street lenders, on how to support those in arrears, and how to work together to the mutual solution.
Other lenders are also taking steps to prepare for the future rate increase. They are being proactive in contacting those customers who may most likely feel the pinch as rates rise for the first time since 2007, and therefore the monthly mortgage payment rise.
As a fully qualified mortgage professional who has completed their CeMAP training, you will be able to give the most suitable advice. By finding out about your customer and their needs, and existing commitments, you will be able to provide an honest and transparent solution. This will ensure ensure that they get the best rate, but also understand the implications of any rate changes in the future.