Mortgage repayments could be eased with debt advice

15/09/2009

Getting debt help could help people make their mortgage repayments, rather than just paying off the interest.

According to Halifax, the percentage of disposable income spent on mortgages has decreased from just under a half at 48 per cent to nearly a third at 28 per cent. That's been recorded in the time from the third quarter of 2007 to August this year.

This looks like good times for the consumers on the face of it. But a mortgage expert has warned that some are only paying off the small interest rates on offer rather than actually paying off their mortgage.

MyMorgageDirect's director, Catherine Hearden, says this is the most affordable mortgages will be for a while and homeowners should switch to repayments rather than sticking to interest payments.

A viable option for homeowners with money problems is a Debt Management Plan'>Debt Management Plan. EuroDebt has seen a significant rise of over 100 per cent in the number of homeowners starting Debt Management Plans during the recession.

EuroDebt's solution model is based upon no further borrowing and their clients' average level of unsecured debt in the last 12 months has been over £29,000 with 8 creditors.

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