News

Jun 20

Mortgage Advice could Counter Debt Increases and Lowered Disposable Income

When moneysupermarket.com questioned UK consumers on their approach to repaying debt, they found one in seven (14%) made only the minimum repayment each month. 10% do so because that is all they can afford, whilst 4% go down that route in order to free up disposable income.

The research by moneysupermarket.com also revealed the average UK personal debt, excluding mortgages, sits at £8,430. Head of loans and debt at moneysupermarket.com, Tim Moss, had this to say: “The nation has been left reeling with inflation now at 4.5%, the highest levels since 2008, and the crippling effects of soaring living costs. It therefore comes as no surprise that people have seen a rise in the amount they currently owe, compared to 2010.”

Tim Moss continued: “The younger generation has been hardest hit by rising levels of debt and it is important this group deal with this problem early on, rather than admit defeat. It’s also hugely worrying that 7% of people are resigned to the fact that debt will always be a burden in their life.”

There are two clear messages here. One is to increase disposable income, taking a look at reducing mortgage repayments is a good idea. Perhaps you could switch to a more favourable rate that will save you a great deal every month? A whole of market mortgage broker will advise.

With Debt Featuring so High on Concern-Lists, it Makes Sense to Insure

The other message is that with debt featuring so high on the concern-lists of so many people, surely it is vital to take out some form of insurance to make sure these debts are repaid should income suddenly drop? Redundancy insurance, or an accident or illness policy, will make provision for repayments to continue during periods of no income.

Speak to an independent mortgage and protection consultant. They will take time to understand your financial situation and will make recommendations to save you money short and long term, and protect you and your family.

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. 

Bower Mortgage Company: FSA regulated UK-wide mortgage advice from friendly, qualified, experienced mortgage planning specialists. Quality, face to face advice and a strong focus on building long term customer relationships. For money saving mortgage and mortgage protection advice, contact Bower on 0800 411 8668; e-mail info@bowermortgagecompany.co.uk.