Targeting the estimated 1.4 million borrowers remortgaging to much higher rates, the initiative is designed to give free early advice to those affected.
Members from all sides of the House of Commons have lent their support to the intiative in the hope it will better inform borrowers of their options as well as letting them know where to turn for help.
Between 2007 and 2008, 16 per cent more people have been contacting National Debtline for advice regarding mortgage and secured loan arrears.
Michael Coogan, CML director general, said: “We may be past the peak of the ‘payment shock,' but market conditions remain uncertain and borrowing costs are continuing to rise.
“Borrowers need to plan ahead for higher monthly payments and look carefully at the options available to them. The earlier the borrower makes the lender aware of any potential payment problem, the wider the range of options for dealing with it.”
Copies of the leaflet 'Fixed-rate Mortgages – Some early advice' can be downloaded from www.moneyadvicetrust.org
