IoM borrowers to receive debt rehab visits
Mortgage field services provider Ascent Performance Group said it plans to conduct fact-finding missions through visits to interest-only borrowers homes.
Over the course of the last year the Financial Conduct Authority has encouraged lenders to contact borrowers to ensure they are aware of their obligations and have a suitable plan to repay the capital element of their loans.
And last month the Council of Mortgage Lenders reported that some 70% of borrowers customers had failed to respond to letters regarding their debt.
With that in mind Ascent Performance Group has now launched its new ‘debt rehabilitation’ service which will make contact with interest-only borrowers on behalf of lenders to help them comply with the regulator’s demands.
This service will contact borrowers by telephone, in writing or on a face to face basis.
At the end of 2013 there were an estimated 2.2m pure interest-only loans outstanding and a further 620,000 part interest-only.