Mortgage Holders Borrowing More

22/06/2007

Moneyextra.com have found out that the average remortgaging has increased by 7.19 per cent which equates to an average remortgage of around £122,5411.

This increase is due to house prices inflating, leaving mortgage holders to remortgage to another deal or use the equity within their home to settle outstanding debts.

Senior editor at Moneyextra.com, Robin Amlôt, spoke further, “It seems many people are opting to switch expensive credit card debt and overdrafts into long term low interest rate mortgage debt. Of course, this does mean they could be paying far more interest in the long run but it is one way of reducing immediate monthly outgoings.”

First-time buyers are under pressure because of the average property value being so high. It is making it virtually impossible for them to carry out a mortgage deal.

Overall the average house prices have increased by 6.05%, leaving the average property price at £228,754 and the average mortgage increased to £139,095, this a slight increase of 2.95 per cent.

The most popular mortgage lender in May 2007 was Abbey, with a jump up from £18,884.08 to £166,732.43.

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