Lenders have met a commitment to the FCA to contact interest-only borrowers whose mortgages are due to mature by the end of 2020 but only 30 per cent of customers have responded to date.
The commitment, given by mortgage lenders to the regulator as part of its thematic review last year, was to contact interest-only borrowers about their plans for repaying their loans.
The Council of Mortgage Lenders surveyed members on their communications and found those borrowers who should have been contacted had been. The only notable exceptions were those with very small balances where there was little material risk and those with whom lenders were already in contact.
The trade body says lenders used a variety of contact strategies, ranging from reminders and mailings requesting the customer’s written response, to questionnaire responses, telephone calls, face-to-face meetings and even home visits. However, only around 30 per cent of those contacted have responded.
CML director general Paul Smee says: “This is an encouraging start but it also highlights the challen-ges of achieving effective two-way communication.”