Advisers can play a key role in support

Published 30th May 2008

The Association of Independent Financial Advisers (AIFA) and the Association of Mortgage Intermediaries (AMI) believe that financial advisers should play a key role in supporting consumers who are struggling with their finances. This follows the Government's announcement last month of a new £10 million package of measures to support homeowners who may be facing difficulties with their mortgage.

The package includes measures to ensure that financial advice and support is available for borrowers who may need it and includes an additional £9 million extra funding for face-to-face debt advice provided by third sector partners including Citizens Advice Bureau.

Commenting on this, Chris Cummings, director general of AIFA and AMI, said: “This announcement is good news for homeowners, but the government should also recognise the key role of financial advisers in assisting those who experience financial difficulties.

Advisers can help consumers to adopt better financial management and better all round budgeting. In particular they can help man-age debt through talking to the lender, finding an alternative mortgage deal or an alternative financial solution.

“Some lenders are helping by sharing information with intermediaries on homeowners who are getting into arrears problems. Intermediaries can then advise consumers and help prevent them getting into more serious difficulties.
Helping consumers better manage their finances through better budgeting means they are less likely to be a burden on the state and will not suffer damage to their credit ratings.”

Source: ' What Mortgage '

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