Banks tell 'at risk' borrowers to spend less or lose their homes - Mortgages, Money - The Independent

Banks tell 'at risk' borrowers to spend less or lose their homes - Mortgages, Money - The Independent

State-owned banks are warning families to curb their spending and concentrate on their mortgage payments.

The banks are identifying risky customers in a pilot scheme that will see 30,000 customers called up over the next few months.

Struggling Bradford & Bingley and Northern Rock customers will receive a phone call from bank staff at UK Asset Resolution (UKAR) urging them to cut back or risk losing their homes when interest rates rise from their current low of 0.5 per cent. UKAR is the holding company overseeing 750,000 mortgage customers and £48bn in lending from the two banks that were nationalised during the credit crisis.