Warning issued over ‘adding debts to mortgage deals’

Moneynet.co.uk has warned that while it may be tempting to consolidate debts in this way, borrowers could ultimately find themselves obliged to pay back more money than they can afford.

Furthermore, these problems are likely to be compounded in the event of further rises in the cost of borrowing, which are now widely expected to be introduced over the course of the next few months, suggest experts from the company.

Chief executive at Moneynet.co.uk Richard Brown commented: “Whilst including the consolidated debt in your mortgage can look attractive, in the long term it could prove to be a very expensive mistake.”

Figures from Credit Action have shown that the amount of personal debt in the UK stood at a total of more than £1,318 billion at the end of March this year.