Early bird catches the worm, Hac says

Homeowners struggling to pay their mortgage should talk to their lender as soon as they can, according to the Homeowners Advice Centre (Hac).

Al Elliot, advisor at the Hac, suggests borrowers that are failing to maintain their monthly payments should talk to their lender "sooner rather than later" about swapping to an interest-only deal because the majority of lenders will not allow homeowners to do this if they are in arrears.

The advisor says there is not much homeowners can do to alter the situation except try to "limit the damage" that late or missed payments might have.

"If your fixed rate will expire soon, assume now that you will not be able to remortgage and start budgeting for repayments at standard variable rate," the spokesperson advised.

Recent research by Tickbox and Opinion Matters for Cheltenham & Gloucester, revealed that almost a third of borrowers would prefer to pay a higher rate with their current mortgage lender than face rejection from another lender.