Secured loans and declining interest rates
14/02/2008Consumers with interest only mortgages are being urged to tackle their debts by one broker.
According to a spokeswoman for Charcol, many people who opted for interest only borrowing to purchase their home have been told that the recent reduction in interest rates means that mortgage debt should be eased sooner rather than later.
Katie Tucker, technical manager for the mortgage broker, said: "It is vital now that the borrowers who went interest only to help their affordability in 2006 or 2007 revert back to capital repayment, or overpay accordingly, as interest rates have started to reduce."
Many people find that debt consolidation can be a good way to reduce their outgoings each month and that secured loans allow them to more easily address outstanding debts.
According to recent research from Charcol, the number of interest only mortgages taken out in 2007 rose by seven per cent on 2006.
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