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Mortgage arrears

How to reclaim mortgage arrears charges

If you have ever fallen behind on your mortgage repayments, hefty mortgage arrears charges were more than likely applied to your account.

Lenders often charge anywhere between £10 and £50 in mortgage arrears charges to borrowers who have fallen behind. Instead of helping those in financial difficulty, they only exacerbate their money woes.

But did you know that mortgage arrears charges can sometimes be reclaimed?

The Financial Services Authority has brought several lenders to book for mistreating customers with mortgage arrears. Mortgage lender GMAC-RFC was fined nearly £10m for punishing borrowers in arrears rather than helping them.

As a result of the FSA's action, more and more lenders are helping borrowers in mortgage arrears and will often refund their penalty charges in full.

If you are a homeowner and want to find out how to reclaim mortgage arrears charges, then click here to see our free mortgage arrears reclaim guide.

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