Remortgages used to clear debts

Clearing debts incurred on credit cards, car loans and home improvements account for nearly two thirds of all remortgage enquiries according to Reef Financial Services.

Reef spokesman Jerome Thompson explained " We are contacted by many people who have stretched their financial resources to the limit. Unfortunately not all lenders will conduct a proper fact find into affordabilityand as a result, if any hicup in income occurs it can lead to dificulties. Anyone considering borrowing should ensure that their adviser or lender has explained the full cost of borrowing, that it is affordable, taking into account possible interest rate rises and that they are protected in the event of unforseen events like unemployment or sickness. Adding short term loans to a mortgage is not always the most cost effective or advisable solution and a reputable broker will consider all the options for their clients."

Reef Financial Services www.you-can-remortgage.co.uk