View more on these topics

Bleak Christmas for debtors

Thousands of consumers in the UK face the prospect of a bleak Christmas and new year as the equity in their homes is eaten away by personal debts that are spiralling out of control, Opus Mortgages warns.

Alarming evidence collated from the mortgage and secured loan applications of 2,000 consumers in the UK reveals that a fifth of those that have requested a remortgage or secured loan in the past six months have a history of being serial debt consolidators.

Lockhart Bruce, Opus director of finance and marketing, says: “The number of people who are seemingly trapped into taking out new debt consolidation deals every six months because they are not addressing their long-term debt problems has to be a cause for concern. The fact that as many as two out of 10 people are not able to sort out their debt problems first time round suggests that they are not getting appropriate advice – or they are not being honest when it comes to addressing the true level of their indebtedness.”

Debt consolidation is one of the major reasons why, in 2003, the UK&#39s remortgage and secured loan markets are experiencing record-breaking sales levels. Figures from the Council of Mortgage Lenders show that about a half of all activity in Britain&#39s £270bn-a-year mortgage industry now relates to remortgaging.

Meanwhile, the value of the secured loans industry is expected to top £17bn this year, with the overwhelming majority of loans being arranged during the build up to Christmas and into the new year as consumers consolidate credit card and unsecured loan debts.

Recommended

Strong deals have followed MPC rate rise, says Clear Cut

Clear Cut Mortgages says that as the dust settles following the MPC&#39s rate rise, strong deals are emerging from the rate-raising gloom. Clear Cut says that some of the best deals on the market remain fixed and discount deals. Ben Thompson, director at Clear Cut Mortgages, says: “The Nationwide 0.35% increase was a surprise, but […]

Accord latest lender partner of Mortgage Brain

Accord Mortgages is to become the latest lender partner of mortgage sourcing provider Mortgage Brain. Lender partners have the opportunity to proactively verify key mortgage product features as displayed on the Mortgage Brain sourcing system, and it is the only system to offer this capability. Accord will begin to verify its products later this year, […]

Genesis unveils initial plans for packagers and appointed reps

Genesis Home Loans has announced its initial propositions plans for packagers and appointed representatives beyond Mortgage Day. The Peterborough-based branded lender and mortgage club says it will be offering a full appointed representative proposition with the combined benefits of a detailed compliance offer, supported by the latest technology and a comprehensive lender panel. Benefits of […]

SMS raises £3,000 for children&#39s charity Dreamflight

Solent Mortgage Services South-West has raised more than £3,000 for children&#39s charity Dreamflight at their second annual South-West charity dinner. The black tie dinner followed by charity auction was held at the Southgate Hotel in Exeter, and attended by SMS&#39 South-West based employees and mortgage introducers from across the region. Dreamflight, a charity that raises […]

The future of active management is now

Fees under pressure. Regulatory moves against closet indexers. Rapid advances in financial technology. Shifting sentiment among investors. Such mounting challenges have led to widespread speculation about active management’s shrinking future. But a closer look inside intelligent portfolio construction today tells a story of expanding roles, added value, and innovative risk-adjusted, lower-cost solutions. Four investment experts […]

Newsletter

News and expert analysis straight to your inbox

Sign up