Tuesday 4th September, 2007 

More and more Britons are releasing their equity in their house as a means of dealing with their debt problems by downsizing, figures released indicate.

Recent research from Zurich, insurance providers, indicates many who have a debt problem are downsizing to smaller properties to gain access to their equity.

With rising interest rates and increasing monthly mortgage prepayments, many people are happy to take a few steps down the property ladder. Approximately a quarter (23%) of those surveyed by Zurich claimed the reason for moving was to downsize.

The search for cheaper properties has caused many homeowners to look further a field. Figures indicate that 15% of homeowners are willing to travel up to 125 miles to find their bargain property.

The impact of recent rises in interest rates is causing many to reconsider how to deal with their debt problems. Findings by the Council of Mortgage Lenders indicate that the traditional use of equity for home improvements looks now to be overtaken by those wanting to use the equity to consolidate their debts.

Browse through Debtwatchdogfor more information about how best to consolidate your debts.