House owners urged not to extend loan term

HOMEOWNERS are being warned not to switch to interest-only mortgages, take payment breaks or extend their mortgage terms to free up cash to pay other debts.

The Debt Management Association of Ireland (DMAI) warns such moves will drive home owners into deeper debt.

The warning from Eugene McDarby, DMAI chairman, comes at a critical time for tens of thousands of homeowners who are in arrears on their mortgages and are about to be hit by budget austerity measures.