Homeowners remortgage for cash to pay bills

Researchers at Durham University have found many homeowners are remortgaging their homes for cash to supplement their day-to-day expenditure. The researchers looked at the spending patterns of more than 8,000 families from 2001 to 2005 and found a third of people used the cash released by equity in their homes for ‘other specified reasons’, ie as a form of ‘self-administered welfare’ rather than on luxuries or home improvements. A spokesperson said that the clampdown on lending by banks and the collapse in property values was a welfare disaster for struggling households.