Remortgage and Bad Credit Mortgages as Mortgage Rates Rise

By: P Evans

Remortgage & Bad Credit Remortgage as Mortgage Rates Increase

As the United Kingdom's interest rates rise to as much as 5.5%, the highest they have risen since April of 2001, there has been a great deal of concern regarding the millions that own homes that could now become over stretched and might need to remortgage to manage the pressures of their monthly payments.

Specialists at Experian advise that bad debt could be set to rise in this climate, as payment pressures elevate and consumers become stretched financially, leading to a possible rise in IVAs and mortgage repossession as people begin falling into arrears on secured loans.

The Council of Mortgage Lenders estimates that just a 0.25% rise in rates would shove the repayments on a loan of 140,000 pounds with term of 25 years at 5.48% up by as much as 21 pounds monthly and interest-only repayments on the same mortgage loan up 29 pounds monthly.

Clearly, increasing mortgage rates will increase pressure on borrowers affordability and may even push some into mortgage arrears as they try to deal with their credit and debt responsibilities on a monthly basis.

Enable Finance are professionals who specialise in helping homeowners in these types of circumstances and offer a bad credit remortgage if customers have become overdue with mortgage repayments or picked up a CCJ or default.

Enable Finance Ltd. is catered for borrowers whose credit is outside high street criteria for lending - for example; bad credit; self cert mortgage; fluctuating patterns of income and court judgments. Enable Finance is regulated and authorised by the Financial Services Authority (FSA). It's a member of the FISA, or the Finance Industry Standards Association and the National Association of Commercial Finance Brokers.

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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.

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