‘More Brits remortgaging to pay off debts’

An increasing number of homeowners around the UK are remortgaging their properties in an effort to become debt free , one expert has asserted.

Sue Anderson, head of member and external relations for the Council of Mortgage Lenders (CML), suggests that replacing one mortgage loan with another from a different lender is an increasingly common way for UK consumers to address their debt management problems.

The trend is being driven by an urgency among British consumers to pay off their unsecured debts and to leave only “less expensive secured credit” outstanding, explains Ms Anderson.

Reflecting on the rise in remortgaging around the country, Ms Anderson commented: “We know that the UK is becoming more indebted and that would seem to be a logical thing that people may well be doing.”

Earlier this month, the CML revealed that the number of homes repossessed in the UK during the first half of 2007 was 30 per cent greater than in the same period last year.