Bad Credit Remortgage - Homeowners Face High Debts

The Consumer Credit Counselling Service (CCCS) is a major financial charity that has warned that more homeowners than ever will be dealing with high levels of debt in 2007. If you are one of those homeowners who have struggled with debt or poor credit rating in the past, it can be a major worry. Traditional lenders may refuse you a remortgage because of your poor credit rating. But if you are one of those homeowners struggling to balance the books, a bad credit remortgage is an option that could help.

Homeowners who take out a bad credit remortgage can:

• Reduce their existing mortgage by switching to a fixed rate or discount rate remortgage
• Consolidate debts and pay off your credit cards and loans
• Raise cash for home improvements, a new car of to pay for a special event

Why are more homeowners turning to a bad credit remortgage?

According to the CCCS, higher inflation and interest rates will leave homeowners with less cash to pay for their everyday outgoings and their debts. If you have already maxed out your mortgage in order to get on the property ladder or buy your dream home, the chances are you are already stretched financially. A hike in interest rates can be enough to put some homeowners over the brink.

Homeowners squeezed

Increasing debt can impact on your credit rating and as a result, you could be denied traditional loans and remortgages. But homeowners have little choice but to opt of bad credit remortgages in the current financial climate. The hike in rates means that repayments on a 150,000 will have risen by 500 a year as a result, and rates are set to rise even further.

CCCS warns homeowners

As a result, the CCCS has reported an increase in homeowners with debt problems. Homeowners are currently borrowing huge sums to get onto the property ladder, which is making it increasingly difficult to keep on top of their finances and make ends meet.

Demand for a bad credit remortgage

As a result, the market for bad credit remortgages has increased. If you want to find out if a bad credit remortgage is right for you, you should book an appointment with a mortgage advisor with specialist knowledge in the bad credit remortgage market.

Homebank have qualified mortgage consultants ready to advise you with your mortgage and insurance needs. For informative and insightful bad credit remortgage advice, call us to arrange a no obligation appointment to suit you. Homebank have mortgage consultants throughout the country who work throughout the day and evening. Homebank are the 'people's mortgage broker' with over 2900 mortgage products to choose from, Homebank's experienced consultants could find the ideal product for you - call Homebank now on freephone 0800 052 3604.