Struggling homeowners have many options

There are still plenty of options available for homeowners who are struggling to find a cheap mortgage or meet the payments on their current deal, it has been claimed.

Ben Wilkie, editor at What Mortgage, said that one of the few savings graces of the current recession is that the low rate of interest has held back the number of home repossessions.

However, he claimed that even if interest rises and current deals become unaffordable there are things homeowners can do rather than falling behind in payments.

"If people are in trouble then there are options available to them. One of those options is to go interest-only, and an interest-only mortgage is costing you virtually nothing with a tracker or variable rate deal," Mr Wilkie explained.

His comments follow new figures from the Financial Services Authority FSA that show the number of new arrears cases in the second quarter of 2011 was 35,700, little change from last quarter and four per cent below the second quarter of 2010.

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2011-09-16 13:22:56 © Moneyextra.com