Banks to tell families:
Cut back or face losing your home

Originally posted by 5corpio
Tens of thousands of struggling families are to be phoned by their bank and told to cut spending or face losing their houses when interest rates rise

More than 30,000 home owners will be told to spend less on nights out, Sky television, gym membership and mobile phones so they can concentrate on paying back their mortgage. Officials from two taxpayer-owned banks admitted on Tuesday that they were undertaking secret credit checks to identify high-risk customers.

Experts said that while it was normal practice for banks to embark on credit checks on customers it was unprecedented for so many families to be targeted after their mortgage had been approved. The warning will come from the state-owned bank charged with recovering the Government’s £48 billion investment in Bradford & Bingley and Northern Rock, the mortgage lenders that were nationalised during the credit crisis.

UK Asset Resolution (UKAR) has identified around 30,000 borrowers from these banks who could find themselves in financial difficulty when interest rates rise from the....