Homeowner debt poised to rise

More people are expected to take on homeowner debt over the next three months, a new survey shows.

According to Paragon Mortgages' poll of brokers, the industry is expecting 6.7 per cent more people to take on home repayments.

A quarter of those surveyed thought that they would see over 10 per cent more business compared to the first three months of the year, whilst a further third expect an increase of up to 10 per cent.

The renewed confidence comes as more lenders offer reduced rates, which should prevent people from having trouble with mortgages in the future.

There are also more products available to potential homeowners, which Paragon’s John Heron says "can only benefit consumers and the mortgage broker market".

Kevin Still, director of Atlantic Financial Management, says: "The availability of more secured borrowing products and changes to acceptance criteria are key to recovery in the housing market.

"But for those with debt problems looking to consolidate unsecured borrowing like credit card debts, it may be some time before products for people with an impaired credit record re-appear in any volume."

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