Friday 17th of April 2009
The economic downturn is causing debt management problems for many property owners, it has been observed.
According to the Homeowners Advice Centre, the credit crunch has created difficulties for those who are planning to tackle debt by remortgaging.
Co-owner Chris Jenkins explained that the tactic has served as a "security blanket" for middle-class homeowners in the past, but a lack of mortgage products has made it difficult to consolidate debts.
"This could cause further problems down the line, especially for those who were relying on equity in their property to supplement pensions in later life," he said, adding that white-collar jobs are also coming "under threat" - creating further problems.
Those who are facing problems in refinancing may wish to seek IVA advice, which could help identify non-borrowing solutions.
Meanwhile, the Council of Mortgage Lenders has revealed that the number of remortgage loans taken out in February was 58 per cent below the level of a year earlier.
