The Money Advice Trust has joined forces with the Council of Mortgage Lenders (CML) to offer free advice to the millions of borrowers coming to the end of their fixed rate deals. The organisations have published a leaflet entitled, ‘Fixed-rate Mortgages – Some Early Advice’, providing details of sources of advice.

“The idea behind the initiative is to give free early advice to these borrowers coming off their fixed rate deals and highlight key sources of independent and free confidential advice, such as adviceUK members, Citizens Advice Bureaux, Business Debtline, National Debtline and the Consumer Credit Counselling Service,” explains Joanna Elson Chief Executive The Money Advice Trust.

The Financial Services Authority estimates around 1.4 million borrowers are likely to face higher mortgage repayments when their fixed agreements come to an end. In the current financial climate many people are expected to struggle.

“We have already seen a 16% increase between 2007 and 2008 in clients contacting National Debtline for advice regarding mortgage and secured loan arrears and we fear that people really are starting to struggle with their mortgage payments as credit becomes more expensive to service,” says Joanna Elson. “Our experience suggests that if you do get into difficultly, seeking free independent advice as soon as possible is the best option to help you sort out your problems. There is always something that can be done and the earlier you seek advice the more options you will have.”

The key according to Michael Coogan Director General of CML is to plan ahead: “Anyone who thinks they might have a problem in paying their mortgage should talk to their lender as soon as possible. The earlier the borrower makes the lender aware of any potential payment problem, the wider the range of options for dealing with it.”