The Conservative leader, David Cameron has urged lenders to help out struggling homeowners who can no longer afford to repay their debts.

It is estimated that roughly 1.4 million are going to see their current cheap fixed rate mortgage deal end in the coming few months leading to sharp rises in mortgage repayments. It is expected that many of these borrowers will see their mortgages go up by as much as £500 in the coming months. This could be the final straw for many households sending them deep into the red according to Cameron.

Cameron has suggested that lenders ’stagger’ interest rate increases on home loans, as well as offering advice on how to cut the cost of mortgage repayments, like suggesting cheaper deals. One idea Cameron has suggested is to allow borrowers to switch to interest-only loan repayments.

Cameron made the suggestions in a speech to the Council for Mortgage Lenders. During his speech Cameron stated: “”I believed we urgently need to take stock of this situation, and together take steps to minimise the impact these higher mortgage bills might have.”

Cameron went on to say: “After all, it’s in no one’s interest if homeowners can’t keep up with their repayments. Because, lets not forget, banks lose out too if mortgages are not repaid.”

The Bank of England kept interest rates the same at the beginning of June in order to keep a balance between inflation and interest pressure. However some lenders have still increased their rates this month, as inter-bank lending remains at a high rate.