Britannia scraps charges on repaying interest-only mortgages
Britannia Building Society today said it planned to contact every interest-only mortgage customer and encourage them to take control of their debt.
This is because customers waiting until the end of their mortgage term can find themselves with a large loan that needs repaying immediately - or may face having their home repossessed.
In a pilot project, Britannia contacted 1,000 interest-only mortgage holders with a bespoke letter telling them their shortfall and what repayment options are available.
Additionally, the building society said it would scrap all fees and charges for customers wanting to repay early or move to a repayment mortgage.
"While a welcome 53 per cent of customers mailed in the pilot responded to confirm that they expected to be able to repay the mortgage at the end of the term, a significant number of account holders have not been in touch," said Rajeev Sharma, head of credit risk at Britannia Building Society.
"We hope by championing the cause through the media and improving our customer contact programme, the remainder will get in touch and take timely action."
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