Remortgage & Bad Credit Remortgage as Interest Rates Climb
As the United Kingdom's interest rates climb to 5.5%, the highest they've been in more than six years, there's been a lot of concern about the millions that own homes who may now end up over stretched and may be forced to remortgage to manage their monthly repayments and affordability pressures.
Experts at Experian warn that increased debt could easily rise as a result of this climate, as payment pressures increase and customers become financially stretched, which leads to a possible swell in IVAs and mortgage repossession as people begin falling into arrears on secured loans.
The Council of Mortgage Lenders has estimated that a 0.25% rise in rates would most likely force the mortgage repayments on a loan of 140,000 pounds with a 25 year term at 5.48% up by 21 pounds a month and interest-only repayments on the exact same mortgage loan up 29 pounds per month.
It's rather obvious that raising interest rates will increase financial pressure on borrowers affordability and could potentially push homeowners into mortgage arrears as they battle to deal with their debts and credit responsibilities on a monthly basis.
Enable Finance are expert professionals in assisting people in this type of circumstance and offer a bad credit remortgage if they've become behind with repayments or have ended up with a Default or county court judgement.
Enable Finance Ltd. provides for those whose credit is outside high street criteria for lending - for example; adverse credit; self cert mortgage; irregular income patterns and court judgments. Enable Finance is authorised by the FSA (or the Financial Services Authority). It is a member of the National Association of Commercial Finance Brokers and the Finance Industry Standards Association.