Better rates might mean less homeowner debt

It has been reported that homeowners could potentially face less financial problems after it was announced that mortgage borrowers' average fixed rates have fallen – to their lowest levels since 2007.

Since rates peaked in April 2008, the average two-year fixed deal has fallen the greatest, down by 3.36 per cent to 4.62 per cent.

This means that the average fixed repayment on a £150,000 loan has come down by over £300 (£316) to just over £850 (£853), reducing the chances of homeowners falling into mortgage arrears in the short-term.

But debt solutions expert, Atlantic Financial Management is warning that even though monthly repayments have fallen, some homeowners may not be using this saving to deal with other debts and this could lead to longer term debt problems, when rates rise again in the future.

Debt problems - Household Finance Index

22/03/2011

Debt problems could put an even greater pressure on homewoners finances in the coming year, followin ...

Debt problems – energy debt

16/03/2011

People in the UK that are currently dealing with debt problems are having their situation made worse ...

Debt problems: advice options

09/03/2011

Britons who are having to deal with debt problems at present do have a broad range of outlets when i ...

Debt problems: water meter

01/03/2011

Debt problems that cause daily problems for the UK's consumers could be alleviated with the addition ...