- Wednesday, 27 January 2010Struggling homeowners seeking the help of
IVA specialists have been offered a lifeline by the Financial Services Authority (FSA).
The regulatory body has announced a set of packages that aims to ensure mortgage holders in arrears are treated fairly.
Among the proposals, firms must not apply a monthly arrears charge where an arrangement has been made to repay the debt, and payments by customers in financial difficulties must first be allocated to clearing the missed monthly payments, rather than to any arrears charges.
Andrew Hagger of moneynet.co.uk said the proposals offered a "glimmer of hope" for struggling mortgage borrowers, stating that many people are struggling to meet their repayments due to "circumstances beyond their control".
To have an additional £30 or £40 monthly arrears charge added to a mortgage balance was merely compounding the problem, he said.
"With 194,600 mortgages in arrears by 2.5 per cent or more of their outstanding balance, these proposals will bring a collective sigh of relief from households the length and breadth of the UK."
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