Abacus Daily Debt News

Lenders to ‘focus on borrower support’

Mortgage providers will be increasingly focusing on providing support to borrowers who fall behind on their payments in the New Year, it has been predicted.

Louise Cuming, head of mortgages at moneysupermarket, explained that a growing number of people are likely to miss repayments as a result of the current economic climate and stated many lenders will have to ensure they have the correct support processes in place to "manage customers" experiencing such difficulties.

She also forecast that current low borrowing levels will remain unchanged, stating: "There will be no miraculous u-turn despite the government’s call to loosen the purse strings; the story of restricted choice and deals only for the ‘chosen few’ will remain."

Ms Cuming’s predictions follow research from Moneyfacts, which revealed that the majority of mortgages on the market are now fixed-rate deals as lenders look to withdraw cheaper tracker options following the recent cuts in the base rate.

By Tom Musk