Remortgage & Bad Credit Remortgage as Interest Rates Climb

As British interest rates swell to as much as 5.5%, which is their highest level since April 2001, there has been a great deal of concern regarding the millions that own homes that could potentially end up over budget and may have to remortgage to manage their monthly repayments and affordability pressures.

Specialists at Experian warn that bad debt could easily rise in this climate, as affordability pressures increase and consumers find themselves financially stretched, leading to a possible growth in IVAs and mortgage repossession as homeowners fall into arrears on their secured mortgage loans.

The Council of Mortgage Lenders estimates that a 0.25% rise in rates could push the mortgage repayments on a loan of 140,000 pounds with a 25 year term at 5.48% up by as much as 21 pounds a month and interest-only repayments on the exact same loan up 29 pounds a month.

It's clear that increasing interest rates increase financial tension on borrowers affordability and will possibly push homeowners into mortgage arrears as they strain to handle their credit and debt commitments on a monthly basis.

Enable Finance specialises in assisting individuals in this type of circumstance and offer a bad credit remortgage if in fact they have become behind with mortgage repayments or have picked up a County court judgement or default.

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