For those that thought that ending stamp duty relief at the start of the year would curtail growth in the housing market, you were right. There was a substantial dip in mortgage lending during January. In fact, with only £8.02billion worth of lending, it was at its lowest since March 2001. Although this still sounds like a lot of lending, it is put into perspective when you consider that the average monthly amount lent during 2007 was over £18billion.

The British Bankers’ Association has released these figures, suggesting that the UK economy will endure a slower recovery than was initially forecast. Without putting too fine a point on it, the Bank of England’s Monetary Policy Committee has warned that the UK’s housing market looks set to be “weak” during 2010. This is a depressing thought for those that had been encouraged by the false dawn in the housing market towards the end of 2009. This was caused by the short supply of homes on the market, which forced prospective buyers into bidding over the odds for houses.

Anyone without a perfect credit score and a large deposit will find it incredibly difficult to get a mortgage as banks and building societies are still deeply insecure about the state of the UK economy and the extent of the recovery. This is also having a severe effect on the remortgaging market. Homeowners looking to take out a new mortgage loan in order to take advantage of the reduced rates will find that this end of the market has all but disappeared. The concept is sound; those on a tracker mortgage swap to a fixed when the rates have nowhere to go but up.

This can free up more money each month to meet other expenditures and debt repayments.
In terms of debt, a consolidation loan can be a potential debt solution on the market for some people. The best rates of interest are reserved for those that secure their debt consolidation loan against an asset, usually their home. However, taking out another mortgage to cover the consolidation loan could be difficult as the least amount of remortgage loans in the UK for ten years were granted in January, only 20,252.

With this in mind, the secured debt consolidation loan may not be as achievable a debt solution as it once was. If you are struggling with your unsecured debts, it is definitely worth looking at the other debt solutions options. There are many ways that you can reduce your monthly outgoings to your unsecured debt without securing it against your home. Falling behind on your debt consolidation loan means that your home could be repossessed.

As everyone faces different money troubles and different levels of personal debt, the solution to each individual’s debt problem must be suited to their circumstances. Getting professional, dedicated debt advice is the best way to be sure you’re getting the right deal on the right debt solution. Harrington Brooks are one of the longest standing and most respected debt solutions companies in the UK. Visit and take the fast, free debt test to see what debt solution is right for you.