Homeowners at Risk of Repossession if Spending is Not Curbed

Fri, 26 Aug 2011

More than 30,000 home owners could be phoned and instructed to mend their spending ways or they are at risk of losing their home when interest rates go up.

A Telegraph report by UK Asset Resolution (UKAR), an organisation established to recover government money ‘invested’ in the bailed out banks, is going to get in touch with them to advise them as to ways in which they can redress any financial problems. This may involve carrying out credit checks on a proportion of them.

UKAR, which oversees 750,000 borrowers and £80 billion in lending, has hitherto identified around 30,000 customers at risk and is going to be phoning them at a rate of 2,000 a week with information and advice on ways in which they can protect their financial position prior to the invariable increase of interest rates .

The UKAR undoubtedly aims to protect the banks' interests. It wishes to make sure that as much of the money as possible is recovered, including interest. In the process, it ensures that the customers of the banks involved can keep up mortgage payments and avoid arrears or repossession.

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