Remortgage & Bad Credit Remortgage as Mortgage Rates Go up

As The UK's interest rates rise to 5.5%, the highest they've been in more than six years, there has been concern about the millions that own homes that will potentially find that they are over budget and might need to remortgage to handle the pressures of their monthly payments.

The professionals at Experian warn that increased debt could easily rise in this climate, as payment pressures increase and customers find themselves financially stretched, leading to a potential increase in IVAs and mortgage repossession as homeowners begin falling into arrears on their secured loans.

The Council of Mortgage Lenders has estimated that a 0.25% rise in mortgage rates would shove the mortgage repayments on a 140,000 pound loan with a 25 year term at 5.48% up by as much as 21 pounds per month and interest-only capital mortgage repayments on the exact same loan up 29 pounds monthly.

Clearly, raising interest rates will increase financial stress on borrowers affordability and could even force homeowners into mortgage arrears as they strain to deal with their credit and debt responsibilities each month.

Enable Finance are experts in assisting individuals in this type of situation and have a bad credit remortgage in the event they have become behind with mortgage repayments or have ended up with a CCJ or default.

Enable Finance Ltd. caters to those whose credit histories fall outside standard criteria for lending - for instance; poor credit; self cert mortgage; irregular income patterns and court judgments. Enable Finance is regulated and authorised by the Financial Services Authority, or the FSA. It's a part of the Finance Industry Standards Association and the National Association of Commercial Finance Brokers.