Mortgage lenders should help struggling customers, says Cameron

Mortgage lenders should "step up to the plate" and ease the burden for struggling mortgage holders, according to Conservative Party leader David Cameron.

Speaking before a meeting with the Council of Mortgage Lenders this week, Mr Cameron said that mortgage holders will find it increasingly difficult to keep up with their mortgage repayments in the coming months, thanks to the recent hike in interest rates.

Although the Bank of England's monetary policy committee cut the base rate by a quarter per cent this month, The Conservative leader said that next year 1.4 million mortgage holders will come to the end of their fixed rate period.

He urged mortgage lenders to take action to reduce the burden on those who will struggle to meet their repayments once the period ends.

Mr Cameron suggested banks and building societies should consider providing a "gradual, tapered increase in mortgage repayments" rather than enforcing a sudden hike.

He said: "This is what I mean by social responsibility: companies operating in an enlightened way that is good for them and good for society as a whole.

"And I expect to see even more examples of this socially responsible approach in the weeks and months ahead."

Commenting on Mr Cameron's speech, Michael Coogan, director general of the CML, said that the Conservatives are right to address the issue.

He said however: "The main missing link at present is an appropriate benefits system targeted at those whose circumstances have changed, which has lagged behind what is needed to create a truly effective safety net in a market where home-ownership is the norm."


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