UK Homeowners Concerned With Making Mortgage Repayments, FSA Reveals

by Jason Gorringe, Tax-News.com, London

05 March 2008

New figures published by the Financial Services Authority (FSA) on Monday show that one in five mortgage holders are concerned about meeting their repayments in the next 12 months. When asked how they would meet these costs, a quarter of them said they had no plans.

The FSA is now launching a GBP2mn advertising campaign to help consumers make informed financial decisions and find the right mortgage for them. It is especially focusing on people whose fixed rate or discount deals are coming to an end this year – 1.4 million short-term fixed rate mortgages are due to end in 2008.

Chris Pond, FSA Director of Financial Capability, explained that:

"Economic conditions are getting tougher, putting pressure on family finances. As the UK's financial watchdog we can help. Our new checklist sets out simple steps that homeowners can take to manage their money and mortgage in difficult times."

"And for those who are really struggling, don't panic. Talk to your lender or get free, confidential debt advice," he added.

The FSA further revealed that it has published a 'Stay in control of your mortgage’ checklist on its Moneymadeclear website, to help people manage their mortgage if times get tough.

Advice contained on the checklist includes:

• Check your budget – think about how you would cope if your mortgage payments increased significantly; Start planning now – talk to your lender and check out your options with the Moneymadeclear impartial mortgage comparison tables;
• Get help – don't panic if you're falling behind with your payments, talk to your lender and/or get free, confidential help from an independent debt advice agency.

The Moneymadeclear range of impartial information contributes to the FSA's GBP90mn National Strategy for Financial Capability, which links Government, financial services industry, voluntary sector and consumer and education groups, in an aim to reach at least ten million people in five years from 2006.

The FSA also announced that it will lead a two-year pilot project to test delivery of the UK’s first national money guidance service following a recent announcement by HM Treasury.

The Thoresen Review of Generic Financial Advice, which was launched last year, recommended that the FSA leads a 'Pathfinder' programme to set up a service offering free, impartial information and guidance on money matters. The service will work in partnership with a range of organisations that are experienced in delivering money guidance.

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