Borrowers urged to discuss problems
Borrowers concerned about their ability to meet their mortgage payments have been advised to contact their lender immediately to discuss the situation.
Katie Tucker of mortgage broker John Charcol made the recommendation after a report by the Financial Services Authority identified three high-risk factors in mortgages.
It suggested any mortgage with a term longer than 25 years, with a high loan-to-value or a large income multiple could pose problems and revealed that 150,000 property loans taken out in the past two years have all three of the risky characteristics.
The FSA's report came after a study by the Royal Institution of Chartered Surveyors predicted as many as 45,000 people could lose their properties because of financial difficulties in 2008.
However, Ms Tucker said there are steps property owners can take well before they need to seek home repossession help.
"Borrowers who are concerned about their monthly outgoings exceeding their income should seek advice immediately," explained Ms Tucker. "Most do not realise that their lender is obliged to look upon their situation sympathetically and even offer remedial options."
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