UK Finance has predicted that home repossessions will surge tenfold in 2022 as Coronavirus support measures come to an end. The figures for 2020 show that 2,900 properties were repossessed by lenders, and this could rise to 22,300 in 2022.
To further compound these alarming figures, around 81,300 households were in home loan arrears last year, but figures suggest this could climb to 142,200 in 2021, with the possibility of a surge in repossessions. The FCA has released new guidance to help struggling borrowers, and lenders have a responsibility to ensure they are prepared for the road ahead.
It’s not all doom and gloom as far as collections are concerned, as lenders can prevent long-term damage to borrowers by taking action now. It’s in the interest of all parties to protect the customer but understanding their situation is the first hurdle that needs overcoming. If you can spot the signs of struggle early, you can offer support, put a plan in place and get them back on track with their repayments.
At Paylink Solutions, we have years of experience in integrating software to allow accurate digital data capture for the collections and lending industry. Our collections platform allows for an accurate Income and Expenditure (I&E) assessment to be carried out in line with regulatory requirements for loans, credit cards and mortgages.
Our platform uses Open Banking and Credit Bureau data for automatic I&E pre-population, to quickly and accurately paint a complete picture of an individual’s financial circumstances. The fully digital or live chat-led customer journey has reduced the time a customer spends completing an I&E over the phone by over 60%, which means agents are under less strain and better prepared to help.
With an individual’s financial picture in front of them, agents can quickly identify which customers could benefit from a repayment plan or debt advice. Once identified, they can seamlessly refer the lender to a free debt advice company as a preventative measure. This means more people can get the help they need quicker.
The number of borrowers with mortgage arrears is predicted to rise to in 2021 and customers need help now. We are ready to work with you and support your collections process, so get prepared now and see how Paylink’s simple I&E tool can help you spot the signs of problem debt.
Find out more about integrating our time-saving collections platform into your collections process click below: