Borrowers urged to be honest
People with a chequered credit history should be upfront about their past difficulties when attempting to remortgage, according to a mortgage market expert.
The number of people struggling to meet their mortgage repayments is expected to rise this year and the Council of Mortgage Lenders has predicted repossessions will be 50 per cent higher in 2008 than in 2007.
Melanie Bien of Savills Private Finance told the Daily Telegraph that anyone experiencing difficulties should approach their lender for help at the earliest possible opportunity.
However, borrowers should not confine that kind of honest approach to dealings with their current lender, she continued.
Anyone planning to switch mortgage providers should ensure their prospective new lender is aware of past missed payments because failure to volunteer the facts may damage their chances of making a successful remortgage application, explained Ms Bien.
"The new lender will look far less kindly on the information if they find out for themselves," she added.
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