Mortgage Industry News

← Back

Cheap mortgage could reduce lifetime of debt

Date: Wed, 24 May 2006

Shopping around for a cheap mortgage could help to lower debt levels for many homeowners.

New research by Citizens Advice Bureau (CAB) revealed that many people are running up debts that could take virtually a lifetime to repay.

The report showed that the average CAB client now owns a total of £13,153 - the equivalent of 17.5 times their total monthly household income. This means that it could take an average of 77 years to clear the debt totally, if paid back at an affordable rate.

Citizens Advice chief executive David Harker said: "Low income, combined with badly informed and poorly understood financial decisions are at the root of many of our clients’ debt problems."

However, shopping around for the best deals on a wide range of financial products such as seeking out cheap mortgage offers, could help to lower debts and reduce repayment commitments.


© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.