The Council of Mortgage Lenders (CML), Citizens Advice and Shelter have joined together and offered advice to borrowers who are struggling with rising levels of debt.

The credit crunch has meant that there are fewer mortgages available and for those that are available the cost has risen and lending criteria has tightened. The CML estimated that 1.4m borrowers will be coming to the end of their fixed-rate mortgage deals in 2008 and they face moving to higher variable-rates if they are unable to remortgage elsewhere. This coupled with the dramatic increase in the cost of living over the last year means debt has become a major concern for some households.

The CML, Citizens Advice and Shelter have released ten tips for those facing difficulties; talk to your lender, as the earlier you get advice the better; talk to an independent debt advisors; plan for the end of a fixed-rate mortgage; take positive action, as ignoring debts will only make them worse; prioritise debts; do not miss payments, pay what is affordable each month; do not ignore letters or phone calls; if facing court proceedings, do not panic and do attend the hearings; do not abandon your property and finally, to consider ‘mortgage rescue’ offers carefully, as they can offer very little security for the future.

David Harker, chief executive for Citizens Advice, told PIN: “Anyone who is falling behind with payments should speak to their lender straight away. Lenders should negotiate with borrowers, but if you are having problems, make sure you seek free, confidential, independent advice without delay.”