This figure comes on the back of the latest FSA arrears statistics that 13,161 homes were repossessed by mortgage lenders in the third quarter of last year representing a 92 per cent jump on the same period in 2007. Guardian believes that this is a clear indication of the need for mortgage brokers and IFA’s to adapt appropriate holistic advice to best serve their clients needs.
Guardian launched its free arrears helpline on 2 January 2009 and has been inundated with calls from financially concerned consumers. Two major re-occurring problems reported are that people are over-committed on their unsecured debts and due to paying the unsecured debts first are piling pressure on the mortgage payments. The other main issue, according to feedback from the helpline, is job losses and the subsequent lower income levels as a result.
The helpline is manned by key personnel with vast experience in the lending arena, the legal profession and the debt management sector. It provides a wide range of free financial assistance and also offers callers an option to instruct Guardian to manage their situation ie to deal directly with the lenders, courts, creditors on the persons behalf.
However, this service will only be utilised in accordance with this being the best solution for individual client’s requirements. Guardian guarantees that it will not push clients towards a management service and the helpline remains committed to providing free and confidential specialist advice. Currently 60% of callers are opting for Guardian to handle these negotiations for them.
Intermediaries will receive a referral commission from any referral that enters into the full debt management programme.
David McCann, Managing Director at Guardian Debt Management, said: “The current economic situation is a dour one and this really underlines the importance of educating those with financial concerns and being in a position to help people before they get too far down the line. However, the good news is that there are ways to overcome these problems as long as people don’t continue to sweep them under the carpet.
“Intermediaries who are seeing an increasing number of clients experiencing credit difficulties can go a long way to helping their clients by offering suitable solutions or, at the very least, having a strong affiliation with a specialist in this sector of the market. This will not only prove invaluable to clients but also to themselves as the chances of retaining the business and referrals will be greatly enhanced.”
