A Debt Consolidation Loan May Be Especially Advisable For Residents From Suffolk

Category: Finance, Credit.

Homeowners are coming under increased financial pressure, new figures indicate. During the month, first- time buyers contributed just over a fifth( 26 per cent) of their income towards mortgages, a slight increase from the 24 per cent noted in September and the uppermost point since 199 Meanwhile, consumers who are already on the housing ladder are paying 16 per cent of their salary, the largest proportion paid since 199As a result of making premium payments into mortgages, it could be possible that homeowners are experiencing problems in meeting other demands on their finances, such as utility bills, personal loans and credit card invoices.

According to a study released by the Council of Mortgage Lenders( CML) , payments made on mortgage interest over the course of October reached the highest peak recorded for more than 15 years. The CML also pointed out that lending" remained strong" during the course of October, accounting for 35 billion pounds- a rise from 36 billion pouns during the same month in 200Further research from the firm indicated that those looking to take their first steps on to the housing ladder borrowed an average of 36 times their income in October, a fall from the 38 in September. However, with the council stating that the majority of this lending was approved before the Northern Rock crisis and global credit crunch took full effect, it was suggested that borrowing via loans is set to be" more subdued" . Existing homeowners, borrowed 02 times, meanwhile their salary- a figure unchanged for two months now. Commenting on the data, director general for, Michael Coogan the CML, said: "October is the last month we expect lending volumes to be higher than a year ago as lenders and borrowers will behave more cautiously in an uncertain and slowing market environment. And looking ahead, any uncertainty in the housing market may mean that borrowers are less willing to stretch themselves financially.

Lenders have already responded to the credit squeeze by tightening lending criteria and increasing some loan costs. However, in the coming, overall months we expect the lending figures to be driven more by supply factors rather than lower consumer demand. " He added that those consumers coming to the end of their fixed- rate mortgage deals during the early stages of 2008 may well see an increase in their monthly repayments. In turn, this may see homeowners manage to make loan payments and service other financial demands with greater ease than was originally anticipated. However, Mr Coogan advised that the" potential impact" that this may have could be offset by the Bank of England s decision to lower the base rate earlier this month and predictions of future cuts. Homeowners concerned about pressure on their ability to make mortgage repayments may wish to consider applying for a cheap debt consolidation loan. A debt consolidation loan may be especially advisable for residents from Suffolk. In taking out a consolidation loan, borrowers may be able to pay off numerous debts quickly and so free up more disposable income each month.

Figures from the Ministry of Justice indicated that the level of bankruptcies in the county increased by 13 per cent during the three months between July and September, in comparison to the preceding quarter. However, those who are wishing to reduce pressure on their spending but are looking to avoid the damage to credit files that bankruptcy can bring may find that a consolidation loan is for them.

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