UK

New campaign urges struggling mortgage borrowers to ‘reach out’ for help early

A new campaign encouraging borrowers who are struggling with their mortgage payments has been launched by UK Finance (Joe Giddens/PA)
A new campaign encouraging borrowers who are struggling with their mortgage payments has been launched by UK Finance (Joe Giddens/PA) A new campaign encouraging borrowers who are struggling with their mortgage payments has been launched by UK Finance (Joe Giddens/PA)

A new campaign encouraging borrowers who are struggling with their mortgage payments to contact their lender has been launched by a trade association representing the banking and finance industry.

The Reach Out campaign will be seen and heard on the radio, in print and online, with television advertising due to be launched in September, UK Finance said.

The campaign’s key message is to encourage people to reach out to their lender early on if they are worried about making their payments.

Lenders have teams of experts ready to help anyone struggling with their mortgage payments.

There are a range of options available for help, which will be tailored to each person’s circumstances.

In the year to January 2023, lenders helped over 200,000 borrowers who could not meet their full mortgage payments and more than two million who needed help with financial difficulties.

The campaign follows the announcement of the mortgage charter, where the Government, lenders and the Financial Conduct Authority (FCA) agreed to new support measures for customers.

Some 44 mortgage lenders representing 90% of the mortgage market have signed up to the mortgage charter.

The support on offer includes giving customers approaching the end of a fixed-rate mortgage the chance to lock in a deal and request a better like-for-like deal if rates change up to six months ahead, and a guarantee of no repossession within 12 months of a first missed payment.

Tailored support for those who need it could also include extending a mortgage term to reduce payments, a temporary switch to interest-only payments, a temporary reduction in payments, or a part interest-part repayment plan.

Borrowers should carefully weigh up their options, as some, such as extending a mortgage term or temporarily switching to interest-only, could mean paying more in charges over the longer term.

UK Finance said the advertising campaign is supported by lenders and produced in partnership with M&C Saatchi London.

David Postings, chief executive of UK Finance, said: “We have launched this campaign with our members to make sure that anyone struggling with their mortgage payments knows that help is available.

“Lenders are ready to provide support even if a customer’s payments are up to date – if you’re struggling with your mortgage, or think that you will struggle, reach out to find out the options available for help.”