Rise in mortgage arrears

9:15pm Monday 19th May 2008

MORE people in the Taunton and Wellington area are getting into money trouble, Taunton Citizens' Advice Bureau has reported.

Figures show a sharp rise of 55% in people unable to repay mortgage and loan arrears between 2006-07and the financial year to this April.

Bureau manager Liz Fothergill said getting advice, even at the later stages of court action, often results in clients reaching a workable arrangement with their lender to save their homes.

She added: "We'd like to see lenders doing everything in their power to avoid matters getting to this stage.

"This means treating borrowers in arrears fairly and sympathetically and being willing to negotiate with people in trouble. Often this does not happen."

CAB offers a number of tips for people who fall behind with their mortgage: *let your lender know you are having problems - do not just stop paying or miss payments.

*make your mortgage payments top priority - you could loose your home if you do not pay.

*get independent advice as soon as you realise there is a problem.

*do not ignore court papers and court hearings, but get sound advice first.

*if you are suddenly out of work or unable to work because of illness or injury, check for any payment protection insurance you may have and check with the CAB on benefits and other help you may be entitled to.