Cards 'used to fund mortgages'

4 April 2008

Credit cards are increasingly being used as a way for consumers to fund deposits for homes as money from other sources dries up, analysts have noted.

All the experts interviewed by the Evening Standard agreed that the available options for homebuyers are narrowing all of the time.

One of the officials, Chief UK and European Economist at Global Insight Howard Archer, suggested that the situation will only get worse if these measures are adopted more regularly.

"It could be a consequence of people looking to borrow while they can amid fears that tightening credit conditions will make this increasingly difficult over the coming months," he commented.

Tracy North, uSwitch's Personal Finance PR Manager, reiterated this view and suggested that people are "grabbing" credit via any means they possibly can in the current economic climate.

In related news, people were recently warned by Sainsbury's Finance that interest-free deals on balance transfers often only last for six months and said they should always look at the terms of these offers.

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