As The UK's 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 about the millions who own homes who may now end up over budget and might be forced to remortgage to handle their monthly repayments and affordability pressures.
The experts at Experian caution that bad debt could possibly rise as a result of this climate, as payment pressures grow and individuals end up financially stretched, leading to a potential increase in IVAs and mortgage repossession as families fall into arrears on their secured mortgage loans.
The Council of Mortgage Lenders has estimated that a 0.25% inflation would most likely force the repayments on a loan of 140,000 pounds with a 25 year term at 5.48% up by as much as 21 pounds monthly and interest-only capital mortgage repayments on the exact same mortgage loan up 29 pounds per month.
It's rather obvious that increasing interest rates will increase financial tension on borrowers affordability and may very well push some customers into mortgage arrears as they battle to handle their debts and credit responsibilities each month.
Enable Finance are experts in helping people in these types of situations and have a bad credit remortgage in the event they've become overdue with repayments or have picked up a Default or county court judgement.
Enable Finance Ltd. caters to potential borrowers that have credit that falls outside standard criteria for lending - for example; less than perfect credit; self cert mortgage; inconsistent earning patterns and court judgments. Enable Finance is authorised and regulated by the FSA, or the Financial Services Authority. It is a member of the National Association of Commercial Finance Brokers and the Finance Industry Standards Association (FISA).