Consolidation Loan – Housing Boom

If you are in debt and own a property, a consolidation loan could help.

Debt has gripped the UK economy and more of us than ever before owe more money than ever. If you are a homeowner you could find a way out - consolidation loans or remortgaging are ways of managing uncontrollable debts.

Homeowner confidence

Property experts have said that no matter how high interest rates go, or whether we face another recession the housing market has traditionally doubled in price every ten years. This means despite the ups and downs of the economy, if you own a property, it’s usually a good investment. This is why more people are releasing equity from their homes or using them to secure consolidation loans to clear their debt.

Borrower boom

One of the reasons we have more debt isn’t simply because we are being careless with money but because consumers have generally been optimistic thanks to a housing market boom and cheap borrowing. But an unfortunate twist of fate could leave you struggling with debt, and a consolidation loan could be a way out. You could be vulnerable if:

• You are a victim of job losses
• There is  recession which could hit the housing market
• You are tempted to take out too high a mortgage and can’t keep up payments because of a lull in finances
• Your personal life such as bereavement or divorce impacts on your employment

Consolidation loan for homeowners

However if you have a property, the chances are you can use this to borrow money - such as a consolidation loan - to help with temporary financial lulls. Interest rates are still reasonably low for borrowers, which is good news. It’s thought that mortgages swallow about a third of people’s salaries – higher than ever – your property is probably the biggest investment you have. As long as the housing market continues to go from strength to strength a consolidation loan or remortgaging could be a way of solving your current debts.

Housing market

If people feel richer, they tend to spend and borrow more. And the strength of the housing market has made many in the UK feel rich. One survey revealed that although debt has increased by 112%, house prices have gone up by 141%, creating consumer confidence. As long as the housing market stays strong, consolidation loans and remortgaging are a viable option.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/index.htm