Credit cards ‘adding to mortgage debts’
Many Britons are adding to their mortgage debts by using credit cards to cover the additional costs when moving house, it has emerged.
Research by Co-operative Bank revealed that 15 per cent of home movers have turned to their plastic to pay for unforeseen fees such as stamp duty and solicitors’ bills.
In all, some £10 billion each year was found to be spent by Britons who had not anticipated costs beyond their mortgage repayments.
“Hidden costs that are not budgeted for can soon mount up,” warned head of mortgages John Barker.
“As house prices have continued to increase it is important for people to look at the bigger picture in terms of costs.”
The majority (57 per cent) of respondents stated that they are unwilling to make sacrifices in their regular spending in order to afford their dream home.
Post Office recently discovered that while many Britons turn to credit cards due to interest-free introductory offers, 60 per cent do not benefit from the terms of their deal.
For those who find their spending is out of control, a concerted credit debt management programme may be one solution.
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