Remortgage & Bad Credit Remortgage as Mortgage Rates Go up

As the United Kingdom's interest rates rise to as much as 5.5%, they highest they have been in more than six years, concern has been voiced regarding the millions of homeowners that will potentially become over stretched and may be forced to remortgage to manage the pressures of their monthly payments.

Specialists at Experian caution that debt could easily rise in this environment, as pressures to afford payments increase and customers end up strained financially, leading to a potential rise in IVAs and mortgage repossession as homeowners fall into arrears on secured loans.

The Council of Mortgage Lenders believes that just a 0.25% rise in rates would most likely push the repayments on a loan of 140,000 pounds with a 25 year term at 5.48% up by 21 pounds monthly and interest-only capital mortgage repayments on the exact same loan up 29 pounds monthly.

It's clear that increasing capital mortgage rates will increase financial stress on borrowers affordability and could push some people into mortgage arrears as they struggle to deal with their credit and debt responsibilities each month.

Enable Finance are professionals who specialise in helping homeowners in these circumstances and offer a bad credit remortgage if they've become behind with mortgage repayments or picked up a CCJ or default.

Enable Finance Ltd. is catered for those that have credit that is outside standard lending criteria - for instance; less than perfect credit; self cert mortgage; fluctuating earning patterns and court judgments. Enable Finance is regulated by the FSA. It's a member of the National Association of Commercial Finance Brokers and the FISA, or the Finance Industry Standards Association.