Mortgage broker MX Moneyextra Mortgages has welcomed the Council of Mortgage Lenders' initiative to keep the level of house repossessions low.
The company warns there will be more repossessions if interest rates rise to 6 per cent or 7 per cent. It suggest that the most practical app-roach for homeowners would be to consider how manageable their repayments would be if interest rates were increased to 10 per cent.
Head of contact centres Vicky Hodgson says: “Individuals should be advised to take responsibility when taking out a mortgage product and not just think they will be fine.
“We urge all our clients to look into suitable protection – it is a security net that can save you if you do fall into trouble. The cost is a small price to pay in the long run against the risk of losing your biggest asset – your home.”