The mortgage is aimed at first-time buyers

The mortgage allows people to borrow enough money to buy a home and pay off outstanding debts.

Mortgage Express, part of the Bradford & Bingley group, said the mortgage met a real need amongst would be first-time buyers burdened by other debts.

However a mortgage broker said the product was expensive and could encourage irresponsible borrowing.

Buyers struggle

The best course of action is to clear debt before taking on a mortgage Colin Jackson, Baronworth Investment Services

The mortgage, called Max 130, was trialled in Northern Ireland during the past two years.

Roger Hillier, Mortgage Express spokesman, said that the trial had made them "confident about the need for a product such as this, designed specifically for first-time buyers struggling to get on to the housing ladder".

The lender added it would check borrowers' credit histories and incomes before approving a loan.

But Colin Jackson, director of Baronworth Investment Services, told BBC News that anyone thinking of taking out the mortgage should be very wary.

"A mortgage like this could be very expensive. Consolidation works by lengthening the period of time that the loan is repaid, which means that the borrower pays more interest."