‘Stop socialising…or we’ll repossess your house’

Seems a fairly extreme statement doesn’t it?

But according to startling news reports, that’s exactly what 2,000 people are now being told every week – in a phone call from their bank.

Bradford & Bingley and Northern Rock Asset Management are the pioneers in this instance, carrying out secret credit checks on homeowners to flush out those prioritising life’s little luxuries ahead of their mortgage payments.

Of course credit checks are par for the course when it comes to borrowing – but only when the loan is initially being taken out. This is thought to be the first time credit checks have been carried out midway through the terms of a mortgage.

So if you’re falling behind with monthly mortgage payments – but still shelling out on your mobile phone bill, gym membership and the occasional night out – you might expect a phone call and a stark warning from your lender.

The aforementioned lenders, both tax-payer owned organisations, are expected to call more than 30,000 of their customers in the coming months, but the practice is likely to be copied by other banks and lenders too.

So, whoever you bank with – you’ll soon be able to add them to the list of people telling you how to spend your cash…

This entry was posted in Personal Financial Advice, UK Economy and tagged , , .

2 Responses to ‘Stop socialising…or we’ll repossess your house’

  1. Kirsten Marsh says:

    I personally think its a fair thing to do.

    Interest rates are bound to increase in the next 12 – 18 months, but to me my home is my priority. So If that means making savings now to do that then that is what I will do.

    I never realised how much money I wasted until I completed a financial planner and I have now set a budget for necessities in my household. But not all people are that savvy and need a kick in the right direction and if that comes in a call from my mortgage lender it would be scare I needed.

  2. Ian Merkel says:

    Thank you very much for the comments Kirsten. We agree with all that you have said.

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