The programme highlighted the willingness of lenders to give credit on cards, and, in some cases, mortgages to people with a number of unsecured debts.
Simon Biddle, head of marketing and communications at Infinity Mortgages, believed while lenders have some responsibility, consumers must also take some share of the blame.
He said: “Lenders do have a responsibility and they do apply strict rules regarding how much they will lend to someone. Often, where borrowers take out large amounts of unsecured debt, they will use the equity in their property to sort it out. However, it’s the old adage that it takes two to tango and they have to be aware if they borrow money, at some point they have to pay it back.”
While the Panorama programme focused on the impact of credit cards, unsecured debt is a major worry for many within the mortgage industry.
With high house prices pushing up the amount people need to borrow to afford property, there are concerns consumers will be unable to afford their mortgages should rates rise sharply.
Ricky Okey, managing director of Abbey, said: “Household debt is still growing by around 10 per cent a year – more than double the rate of income growth. Some households, particularly first-time buyers, are therefore likely to find themselves constrained by the repayment prospects that they face.
“Rates are still relatively low, and many will have the cushion of being on a fixed rate. It’s important for them to remortgage as soon as their deal ends to ensure their mortgage is competitive.”
