Spicerhaart Corporate Sales has partnered with fact-finding firm Excel and law firm TLT to launch a resolution for interest-only mortgage product lenders.
The approach aims to provide a strategy for a lender within 90 days of the product’s resolution through either repayment, conversion, remortgage, the sale of the property, or litigation.
The proposition is designed to target borrowers who are reluctant to engage with their lenders due to fear they cannot pay back the outstanding debt, or do not like their options, it adds.
Spicerhaart Corporate Sales client account manager Dave Miller comments: “Over the past few years lenders have successfully implemented a wide range of strategies to contact their interest only customers.
“However, a proportion of those who are often the most vulnerable of customers, are still failing to engage, while many others are now past their term expiry date with no formal agreement in place for resolution.”
“With arrears and repossessions at a historic low, it is evident that lenders are seeing greater success now than ever before in terms of engaging interest-only customers.
“But there are still many customers either unable or unwilling to engage which presents a real challenge for lenders.”
Excel chief executive Laurence Venn says: “Our new proposition addresses the difficulty lenders face in resolving every case and is aimed at avoiding drift, which so often can occur in these difficult situations.”
TLT partner Graham Walters adds: “We aim to provide absolute resolution both for the customer and the lender based on the customer’s individual circumstances. This is an issue that needs to be dealt with.”