Released on = June 28, 2007, 6:38 am

Press Release Author = Charlotte Burrows

Industry = Real Estate

Press Release Summary = Britons are choosing to borrowing more against their homes,
it has been found, despite recent rises in interest rates and a catalogue of
predictions from analysts that rates are due to surge to at least six per cent in
the near future.

Press Release Body = Figures released by price comparison website Moneyextra show
the average re-mortgage is now £122,541, up 7.19 per cent from last year\'s
equivalent.

Moreover, the average mortgage for a first-time buyer have rose by 2.99 per cent in
the last year, and the mean mortgage as a whole by 2.95 per cent - making all groups
increasingly susceptible to financial crises should the Bank of England\'s monetary
policy committee choose to hike rates in July.

\"Recent reports from the retail sector, including disappointing sales growth figures
from both Tesco and Sainsbury, would suggest that we\'re not spending this money on
goods and services but using it to reduce other debts,\" commented Robin Amlot,
senior editor of Moneyextra.

\"It seems many people are opting to switch expensive credit card debt and overdrafts
into long term low interest rate mortgage debt. Of course, this does mean they could
be paying far more interest in the long run but it is one way of reducing immediate
monthly outgoings.\"

The idea of getting further credit arrangements to fund mortgage payments is a
disaster waiting to happen says property buying firm National Homebuyers. Director
Julian King says: \"Taking out loans or extending overdrafts to fund a mortgage will
kill the homeowner.\"

\"The fact is, affordability is a problem for thousands of homeowners and borrowing
to pay off borrowing is a spiral that will only result in increased debt.

\"People needing to sell their homes are finding it difficult on the open market
because of the lack of buyers and are seeking alternative ways to sell their house.\"

National Homebuyers is the UK\'s leading fast purchase property firm, guaranteeing to
make a cash offer to buy any property quickly for vendors who need a quick sale. The
company also pay for legal fees and can arrange an equity release solution, sell and
rent back, allowing the homeowner to release capital in their property without the
need to move out.

Web Site = http://nationalhomebuyers.co.uk

Contact Details = Sterling House
20 Victoria Way
Burgess Hill
West Sussex
RH15 9NF
0870 979 8118
Fax: 01444 257333
info@nationalhomebuyers.co.uk