Spicerhaart launches interest-only solution for lenders

Both the customer and the lender will be engaged throughout the journey to resolution, whether that is repayment, conversion, remortgage, the sale of the property, or where there is no other solution, litigation. Spicerhaart promises to deliver a clear strategy for the lender within 90 days.

In May 2018, UK Finance reported that there were 1.7 million interest-only mortgages outstanding in the UK with around 200,000 due to mature by 2020.

Dave Miller, client account manager at Spicerhaart Corporate Sales, said: “Over the past few years lenders have successfully implemented a wide range of strategies to contact their interest only customers. However, a proportion of those who are often the most vulnerable of customers, are still failing to engage, while many others are now past their term expiry date with no formal agreement in place for resolution.

"With arrears and repossessions at a historic low, it is evident that lenders are seeing greater success now than ever before in terms of engaging interest-only customers. But there are still many customers either unable or unwilling to engage which presents a real challenge for lenders.

“That is why we have created this proposition; we are able to combine all the expertise needed to be able to find the best solution for both lenders and their customers.”

Laurence Venn, CEO at Excel, commented: “Our new proposition addresses the difficulty lenders face in resolving every case and is aimed at avoiding drift, which so often can occur in these difficult situations.”

Graham Walters, partner at TLT, added: “We aim to provide absolute resolution both for the customer and the lender based on the customer's individual circumstances. This is an issue that needs to be dealt with and we believe that our approach can assist to achieve this.”