Mortgage Arrears Management Scheme

Written by Payplan Press Release - Grantham on Thursday 4 December 2008

Payplan Launches Specialist Arrears Management Service For Lenders

Payplan, the free debt solutions provider, today announces plans to launch a specialist arrears management scheme for mortgage lenders. This new service, completely free to those in debt, will focus specialist support for customers who are struggling to honour their mortgage payments due to unsecured debts.

2009 Will Prove Worst Ever For Missed Mortgage Payments

Payplan’s service will help lenders counter 2009’s greatest threat; rising arrears. Around 3 million fixed-rate and discounted mortgage deals end in 2008 and 2009, and borrowers will move into higher mortgage payments. Due to the recession and other debt commitments, borrowers are not financially prepared for this rise, leading to increased mortgage arrears.

Helping Prevent Reoccurring Mortgage Arrears

In addition, mortgage lenders have been suffering as customers prioritise unsecured debt repayments. Payplan’s clients in mortgage arrears also owe on average £42,500 in unsecured debt, and often haven’t told their mortgage lender this. Payplan’s new service enables lenders to see the ‘whole picture’ of a customer’s indebtedness, and then works out the best course of action to reduce the chance of arrears reoccurring.

Phil Bushell, Arrears Manager at Payplan, commented on the development of the service:

“Against this back drop of rising arrears, the benefits of the scheme for lenders are clear: improve your clients’ finances, clear their arrears and enable them to make regular mortgage payments once again.

“Without an intermediary service like Payplan’s to manage the entirety of a customer’s debt, traditional solutions such as payment breaks and capitalisation of arrears only serve to delay an inevitable decline into further arrears.”

Are You Struggling With Mortgage Arrears?

Payplan provides free, ethical and immediate debt help to over 100,000 people every year, including advice for people with mortgage arrears, working closely with organisations in the field of money advice and consumer and employee welfare.

Call Payplan free on 0800 280 2816 to speak with an experienced debt adviser or alternatively, contact Payplan online.

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