As UK interest rates rise to as much as 5.5%, which is the highest since April 2001, a great deal of concern has been voiced regarding the millions that own homes who could potentially find that they are over stretched and might be forced to remortgage to manage their monthly repayments and affordability pressures.
Experian's experts suggest that bad debt could easily rise in this environment, as affordability pressures elevate and customers end up financially stretched, which leads to potential increases in IVAs and mortgage repossession as families begin falling into arrears on secured mortgage loans.
The Council of Mortgage Lenders estimates that just a 0.25% rise in mortgage rates could push the capital mortgage repayments on a loan of 140,000 pounds with a 25 year term at 5.48% up by 21 pounds monthly and interest-only mortgage repayments on the same loan up 29 pounds a month.
Clearly, increasing mortgage rates will add to financial tension on borrowers affordability and could possibly force some homeowners into mortgage arrears as they work to deal with their credit and debt commitments on a monthly basis.
Enable Finance are professionals who specialise in helping families in these kinds of situations and offer a bad credit remortgage in the event they've become behind with mortgage repayments or have ended up with a default or CCJ.
Enable Finance Ltd. provides for those that have credit that is outside standard criteria for lending - for example; negative credit; self cert mortgage; fluctuating patterns of income and court judgments. Enable Finance is regulated and authorised by the Financial Services Authority (FSA). It is a part of the Finance Industry Standards Association (or the FISA) and the National Association of Commercial Finance Brokers.