Remortgage & Bad Credit Remortgage as Mortgage Rates Go up

As UK interest rates rise to as much as 5.5%, the highest they have been since April 2001, there's been a lot of concern regarding the millions who own homes that could now become over stretched and be forced to remortgage in order to manage monthly repayments and affordability pressures.

Professionals at Experian warn that debt could easily rise in this climate, as payment pressures increase and customers find that they are stretched financially, leading to a possible growth in IVAs and mortgage repossession as homeowners begin falling into arrears on their secured mortgage loans.

The Council of Mortgage Lenders estimates that a 0.25% rate rise could force the mortgage 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 same loan up 29 pounds a month.

It's clear that raising capital mortgage rates increase financial stress on borrowers affordability and could even push some people into mortgage arrears as they work to handle their debts and credit commitments on a monthly basis.

Enable Finance are experts in assisting homeowners in this type of situation and have a bad credit remortgage if customers have become behind with mortgage repayments or have picked up a default or CCJ.

Enable Finance Ltd. caters to borrowers that have credit that is outside high street criteria for lending - as examples; unfavorable credit; self cert mortgage; inconsistent income patterns and court judgments. Enable Finance is authorised by the Financial Services Authority, or the FSA. It is a part of the FISA, or the Finance Industry Standards Association and the National Association of Commercial Finance Brokers.