Struggling homeowners warned of online claims

MORTGAGE holders struggling with payments are being warned they could make problems worse by acting on fake claims about legal loopholes and conspiracy theories claiming they cannot be held liable for their debts.

- VICKY SHAW

The Financial Conduct Authority (FCA) said that people at risk of losing their home should beware of claims that they are not legally bound by their mortgage contract.

It urged struggling borrowers to instead speak to their lender, who could offer various options to support them.

The FCA has updated its consumer web pages to warn people about false and harmful information.

The regulator said it is aware of mortgage holders being misled by online misinformation, often with serious financial consequences.

In a bid to stop their home being repossessed, mortgage holders may end up paying others a fee to take their claims to court.

But, as well as being unsuccessful due to claims not being legally valid, people could also risk losing a big chunk of the equity they had in their home, the FCA said.

This is due to increased costs related to repossession, legal fees and the impact these activities can have on the value of their homes.

Even if someone cannot afford to stay in their home, their lender may be able to help them sell.