Remortgage and Bad Credit Mortgages as Mortgage Rates Rise

Remortgage & Bad Credit Remortgage as Interest Rates Rise

As British interest rates increase to as much as 5.5%, the highest since April 2001, a good deal of concern has been voiced about the millions of homeowners that will potentially become over stretched and might need to remortgage to manage their monthly repayments and affordability pressures.

The experts at Experian suggest that bad debt could possibly rise as a result of this environment, as affordability pressures grow and customers find themselves financially stretched, which leads to a possible swell in IVAs and mortgage repossession as homeowners fall into arrears on their secured loans.

The Council of Mortgage Lenders has estimated that a 0.25% rise in rates would shove 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 capital mortgage repayments on the exact same mortgage loan up 29 pounds per month.

It's rather obvious that raising interest rates add to financial stress on borrowers affordability and may even push some customers into mortgage arrears as they strain to handle their credit and debt responsibilities every month.

Enable Finance specialises in helping families in these kinds of circumstances and have a bad credit remortgage if they have become overdue with repayments or have a default or CCJ.

Enable Finance Ltd. provides for those who have credit that falls outside standard criteria for lending - as examples; negative credit; self cert mortgage; inconsistent earning patterns and county court judgments. Enable Finance is regulated by the FSA. It's a member of the Finance Industry Standards Association (or the FISA) and the National Association of Commercial Finance Brokers.

Mr Evans is a content writer for www.enablefinance.com that writes about mortgages in the UK. Specializing in everything from self certification mortgages to first time mortgages, he works diligently to explain and simplify the mortgage market for everyone.

Article Source: http://www.wellnessarticlelibrary.com

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