As Great Britian's interest rates increase to 5.5%, they highest they have been in more than six years, there has been concern about the millions of homeowners that could potentially find that they're over budget and might be forced to remortgage in order to manage monthly repayments and affordability pressures.
The experts at Experian suggest that increased debt could be set to rise in this environment, as affordability pressures grow and consumers find that they are financially strained, leading to potential increases in IVAs and mortgage repossession as homeowners fall into arrears on their secured loans.
The Council of Mortgage Lenders has estimated that a 0.25% rise in rates would push the mortgage repayments on a loan of 140,000 pounds with term of 25 years at 5.48% up by 21 pounds a month and interest-only repayments on the same loan up 29 pounds a month.
It's rather obvious that raising interest rates will add to financial pressure on borrowers affordability and may very well force some into mortgage arrears as they battle to handle their credit and debt responsibilities each month.
Enable Finance specialises in assisting homeowners in these types of situations and have a bad credit remortgage if in fact they have become overdue with repayments or have a default or CCJ.
Enable Finance Ltd. provides for those who have credit that falls outside standard lending criteria - for example; bad credit; self cert mortgage; irregular income patterns and county court judgments. Enable Finance is authorised and regulated by the FSA. It is a member of the FISA (or the Finance Industry Standards Association) and the National Association of Commercial Finance Brokers.