Borrowing Should Be ‘Structured In Best Way Possible’
Britons need to take time to ensure their mortgage deal is
the right one for them, an industry expert has claimed.
 
Julia Dallimore, marketing director for Picture Financial,
claimed that as interest rates continue to increase and a
greater proportion of money is spent on servicing loans
costs, consumers need to make sure that "borrowing is
structured in the best way for them". As a result, she
claimed that those who already have "high levels of
existing credit" are set to find further pressure placed on
their day-to-day finances should the Bank of England's
monetary policy committee (MPC) decide to increase the base
rate even further. Ms Dallimore also pointed to recent
research from the financial services firm which revealed
that 15 million Britons (42 per cent) are concerned that
they are not getting the best deal possible for interest
rates and charges for various monetary products.
 
She said: "These growing levels of borrowing alongside the
increasing interest rates mean that it's more important
than ever that people review their finances to make sure
they are getting a good deal and that their borrowing is
structured in the best way for them. By consolidating
existing credit into a secured loan people can often reduce
their monthly credit repayments by more than half."
 
Consumers were also advised to ensure that they borrow
credit from a "responsible lender". The director added that
as a result such providers are likely to consider a
borrowers' full financial stature and ensure that they will
be able to make repayments. Meanwhile, those looking to
take out a loan should also take the time to make sure that
they aware of the level of commitment required by them when
taking out credit.
 
For those running into repayment difficulties on multiple
areas of borrowing, Ms Dallimore suggested that by
consolidating existing debts into a secured loan Britons
"can often reduce their monthly credit repayments by more
than half". Despite secured loans often reported as cheaper
than credit cards, she claimed that consumers may find
themselves paying out more money if they choose to spread
out their monthly repayments over a longer period of time.
"If you choose to spread your repayments over a longer
period you may end up paying more interest so it's
important that you fully understand the choices you are
making," she commented.
 
Since the MPC voted to increase the base rate to 5.75 per
cent, Peter Griffiths, chief executive of Principality
Building Society, claimed that homeowners in Wales are
among those set to be the most adversely affected.
"However, we are advising people not to panic but to look
at how it will affect their finances. They can seek advice
from a mortgage advisor who will help them to consider
their options and possibly reduce their mortgage
repayments," he said. Figures from the financial services
provider revealed that following five interest rate rises
in the space of the past 12 months, consumers in the
principality have seen their monthly mortgage repayments
increase by about £100.
 
 
----------------------------------------------------
Abbi Rouse writes for All About Loans. Our visitors are
offered advice and information all about loans, and can
apply online for tenant loans and secured home loans for