The Financial Services Authority (FSA) is launching a £2m advertising campaign in a bid to help homeowners worried about meeting their mortgage repayments. It comes as the FSA publishes figures showing that one in five mortgage holders are concerned with meeting their repayments in the next year.
The FSA survey has also found that a quarter of respondents said they did not have back-up plan in place if they fail to make their repayments.
The campaign aims to help consumers make “informed” financial decisions and find the right mortgage for them. It will focus on people whose fixed rate or discount deals come to an end this year; an estimated 1.4 million short-term fixed rate mortgages are due to end in 2008.
FSA director of financial capability, Chris Pond, says economic conditions are getting tougher, putting pressure on family finances. He adds: “As the UK’s financial watchdog we can help.”
The push will drive people to a “Stay in control of your mortgage” checklist published on its Moneymadeclear website, which sets out simple steps homeowners can take to manage their money and mortgage in difficult times.
The Moneymadeclear information service contributes to the FSA’s £90 million National Strategy for Financial Capability, which brings together the Government, financial services industry with the voluntary sector and consumer groups to pool money and advice. It aims to reach at least 10 million people by 2011.