Debt hit homeowners opt to extend mortgages
Debt hit homeowners opt to extend mortgages
Wednesday 16th July 2008
According to mortgage broker John Charcol, over the last two months between ten per cent and 15 per cent of its customers have opted to extend their loan when they re-mortgaged and in so doing cut their repayments.
Ray Boulger, senior technical expert at John Charcol, said the move was a prudent one for homeowners who would otherwise be facing significantly more costly repayment terms.
He commented: 'The key thing is that a homeowner who needs to re-mortgage must feel they can afford the higher payments.
"If they cannot, it is much better to either extend their mortgage or switch to an interest-only deal."
News of findings comes as a study conducted by debt charity Shelter found that over the last 12 months 4 million Britons have used loans and credit card debt to pay higher mortgage repayments.
The higher repayment rates currently being charged by lenders are expected to fuel a surge in repossessions this year as well as an increase in the number of people opting for debt management products such as Individual Voluntary Arrangements (IVAs) and Debt Management Plans (DMPs).
Looking for freedom from your debts? We can help
Related News
Energy price hikes stoking debt fears - 15/07/08
Further energy price hikes would pile pressure on millions of Britons already struggling with higher living costs and increased payments on mortgage debt, it has been revealed
Further energy price hikes would pile pressure on millions of Britons already struggling with higher living costs and increased payments on mortgage debt, it has been revealed
Debt-hit consumers cut back on savings contributions - 15/07/08
Soaring bills have meant that more debt-hit Britons are being forced to prioritise day to day living expenses over putting money aside for the future, it has been revealed
Soaring bills have meant that more debt-hit Britons are being forced to prioritise day to day living expenses over putting money aside for the future, it has been revealed
Debt fears fuels wave of belt-tightening - 14/07/08
Debt-hit consumers are set to tighten their belts in increasing numbers in months to come as they attempt to combat rising inflation, it has been discovered
Debt-hit consumers are set to tighten their belts in increasing numbers in months to come as they attempt to combat rising inflation, it has been discovered
Higher energy bills pose debt threat for renters - 14/07/08
Britons in rental accommodation are more at risk of falling into debt as a result of energy price hikes than those with mortgages, a new study suggests
Britons in rental accommodation are more at risk of falling into debt as a result of energy price hikes than those with mortgages, a new study suggests
Mounting mortgage debt fuels interest in sale and rent back schemes - 11/07/08
Hundreds of thousands of homeowners would consider a sale and rent back scheme if they were struggling with mortgage debt repayments, it has been discovered
Hundreds of thousands of homeowners would consider a sale and rent back scheme if they were struggling with mortgage debt repayments, it has been discovered
News Article Search
Quick Apply
News Archive