Targeted at UK lenders with large back books of interest-only customers, Spicerhaart has partnered with fact finding and relationship management firm Excel and law firm TLT, to find solutions for customers, including repayment, conversion, remortgage, property sale or litigation.
The service will produce a strategy within 90 days, it said.
In May 2018, UK Finance reported that there were 1.7m interest-only mortgages outstanding in the UK with around 200,000 due to mature by 2020.
Spicerhaart said while most of these customers will engage with their lenders and agree a resolution, the proposition will assist those borrowers that are more reluctant, either because they do not like their options, or they fear they simply have no way of paying back the outstanding debt.
Spicerhaart has assisted borrowers with expired interest-only loans for some time and its asset management division can advise the customer on property value.
The firm said this combination of expertise offers an approach that will deliver a resolution for lenders with interest-only customers that are either coming to maturity with no plan in place or are already there.
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.”
He added: “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.”
