Released on: May 29, 2008, 2:59 am

Press Release Author: Debt Advisers Direct

Industry: Financial

Press Release Summary: Commenting on the latest forecast from the Council of
Mortgage Lenders, debt consolidation experts debtadvisersdirect.co.uk warn
homeowners and would-be homeowners to prepare for tough times ahead - and if
necessary seek debt advice.

Press Release Body: Commenting on the latest forecast from the Council of Mortgage
Lenders, debt consolidation experts debtadvisersdirect.co.uk warn homeowners and
would-be homeowners to prepare for tough times ahead - and if necessary seek debt
advice.

"The CML anticipates a 7% year-on-year drop in house prices by the end of 2008,"
says a debtadvisersdirect.co.uk spokesperson. "After a decade of rapid growth, this
is clearly an unwelcome shock to homeowners. If they're thinking of moving, they may
feel compelled to accept a low offer if they wish to sell their property before
prices drop further. And anyone seeking to consolidate their debts with a secured
loan or remortgage may have less equity to draw on. They may wish to wait for
conditions to improve before they consolidate their debts - and if they can't wait,
they may well have to consider alternative debt solutions, such as a debt management
plan or IVA (Individual Voluntary Arrangement)."

"Naturally, people with high-LTV mortgages are particularly worried about negative
equity: when a property's value is less than the debt owed, the owner can be 'tied
in' to their property, unable to sell it to clear their mortgage debt. Anyone in
that situation should seek debt advice without delay."

"What's more, the current lending squeeze (a major contributory factor to the
housing market's problems) means that many potential first-time buyers can't take
advantage of falling prices - so today's tighter lending criteria are depriving the
housing market of the demand that could help bolster those prices." As CML director
general Michael Coogan puts it: 'Over the next few months, lending volumes will get
worse before they get better.' The CML expects 35% fewer property transactions in
England and Wales than last year, with net lending down by around 50%.

Looking beyond homeowners and would-be homeowners, this can have a major impact on
the whole nation's economic health. The latest figures from the Office for National
Statistics show that UK retail sales fell in both March and April, leading economic
experts to predict further erosion of consumer confidence and a knock-on impact on
employment. "From solicitors and estate agents to removal firms and decorators, a
slowdown in the housing market affects a wide range of people, who may find
themselves with lower disposable incomes (or even unemployed). At the same time,
would-be homeowners are spending less as they save up for massive deposits."

"Clearly, any reduction in disposable income indicates a decreased ability to make
monthly repayments to debts - so in times of economic stress, it's particularly
important for borrowers to get their finances in order. Given the current lending
squeeze, it's essential that people in financial difficulties talk to a debt adviser
who specialises in helping people with adverse credit ratings.
Debtadvisersdirect.co.uk doesn't 'just' provide debt advice. We provide a wide range
of debt solutions, from debt consolidation loans to debt management plans, IVAs,
remortgages and managed bank accounts."


Web Site: http://www.debtadvisersdirect.co.uk/

Contact Details: Debtadvisersdirect.co.uk helps people with financial difficulties,
providing free advice and tailor-made debt solutions. For more information, contact
Melanie.Taylor@debtadvisersdirect.co.uk (0845 056 6480) or visit the
debtadvisersdirect.co.uk website at http://www.debtadvisersdirect.co.uk/.