Bank of Ireland Mortgages has said the number of mortgage intermediaries’ clients who require debt consolidation is increasing. In a poll of brokers, 62% said they saw the requirement for debt consolidation increasing, with only 15% of intermediaries reporting a decrease in enquiries.
One-third of those polled said debt consolidation comprised less than 10% of their business, but 16% said over half their business involved refinance.
When asked why clients wanted to refinance, 57% of intermediaries claimed it was for a lower rate, 13% said it was to repay all their debts with one loan and 35% of those who are refinancing debt also had savings.
Bank of Ireland Mortgages has responded to this research by launching a new product called ConsoliDebt. For clients with a clear credit history, the bank now offers loans up to 95% LTV.
Sheena Court, head of marketing for Bank of Ireland Mortgages, said: ‘Our brokers are meeting more clients in need of debt consolidation, so this launch is to meet their needs.’