Remortgage & Bad Credit Remortgage as Mortgage Rates Increase

As British interest rates climb to 5.5%, they highest they have been in more than six years, concern has been voiced about the millions that own homes that could potentially find that they are over budget and be forced to remortgage in order to manage the pressures of their monthly payments.

The experts at Experian caution that debt could easily rise in this environment, as affordability pressures increase and customers find themselves strained financially, which leads to a possible swell in IVAs and mortgage repossession as homeowners begin falling into arrears on secured loans.

The Council of Mortgage Lenders has estimated that just a 0.25% rise in interest 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 a month and interest-only capital mortgage repayments on the exact same mortgage loan up 29 pounds a month.

It's clear that increasing capital mortgage rates add to financial demand on borrowers affordability and may very well push homeowners into mortgage arrears as they work to deal with their credit and debt responsibilities every month.

Enable Finance are professionals who specialise in helping individuals in this type of situation and have a bad credit remortgage if indeed they have fallen behind with mortgage repayments or picked up a Default or county court judgement.

Enable Finance Ltd. is catered for borrowers whose credit is outside standard lending criteria - as examples; less than perfect credit; self cert mortgage; irregular patterns of income and county court judgments. Enable Finance is regulated by the FSA, or the Financial Services Authority. It's a part of the FISA, or the Finance Industry Standards Association and the National Association of Commercial Finance Brokers.