This compared with 23 per cent who said they had seen no change and only 15 per cent who said the number of debt consolidation cases were decreasing.
The debt consolidation market is allegedly worth £50 billion; something which was confirmed by the level of activity in this market among brokers. 16 per cent of brokers said that over half of their business involved refinance. And four per cent said that over 80 per cent of their clients required this service. A further 27 per cent of brokers said that between a quarter and a half of their clients needed debt consolidation and only a third of brokers said that it made up 10 per cent or less of their business.
The biggest single reason for consolidating debt was to clear credit cards and other unsecured loans. The second was spending on home improvements, and third was car loans. Over 75 per cent of respondents had debts to consolidate from more than one of these areas.
In response to the research BIM has relaunched its debt consolidation proposition ‘ConsoliDebt’.
Sheena Court, head of marketing for Bank of Ireland Mortgages, said: "This is a growing market. Our brokers are meeting more and more clients in need of debt consolidation, so this launch is designed to meet their needs."
ConsoliDebt offers up to 95 per cent loan-to-value for borrowers with a clean credit history. The new rates include: a three-year base rate tracker with an initial rate of 4.45 per cent, which then reverts to the Bank of England base rate plus one per cent.
A three-year base rate tracker, with fees paid, and an initial rate of 4.75 per cent. BIM will refund valuation fees up to £500, contribute £315 towards legal fees and pay the additional security fee. This mortgage also reverts to Bank of England base rate plus one per cent.
