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More than 4 million fear they`ll be made redundant Consumers took on more mortgage debt in July Debts called in by parents Teenagers `scared of debt` Rising household costs could pressure people in debt Pensions debt may impact workers` retirement funds Welsh young adults `at highest risk of debt problems` Over 50s can`t afford to enjoy retirement because of debts Budget: tackling the nation`s debt Short-term debt: `no need for price control` The cost of clearing debt Education debt Tackling the national debt Number of mortgage deals on offer exceeds 3,000 Almost 5 million take on debt to pay household bills OECD: household debt more than 120% of disposable income Petrol price falls help people in debt Amount of mortgage debt taken on at lowest level in ten years Northern Ireland sees significant IVA rise Overdraft debt `becoming more expensive`

Cost of new mortgage debt drops

28/12/2009

According to research by Moneyfacts.co.uk, the cost of servicing mortgage debt (for people taking out two-year fixed-rate mortgages) has fallen to its lowest level since the start of the year, the Telegraph reports.

The interest rate on the average two-year fixed-rate deal now stands at 4.86%, after lenders - over the last week - cut rates by as much as 0.4%.

The number of two-year fixed-rate mortgage deals charging less than 4% interest has risen from 53 to 94 in the last two months alone, suggesting that more people taking out a mortgage will be able to benefit from the low base rate - and make smaller payments towards their mortgage debt each month.

Michelle Slade, a spokesperson for Moneyfacts.co.uk, said: "Lenders finally appear to be putting the `open for business` sign back in the window and bringing competition back to the mortgage market.

"Borrowers will be hoping that the early Christmas present they have received from lenders will continue into 2010."

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More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according