WILL MORTGAGE INTEREST RATES GO UP AGAIN?
It is expected that interest rates will continue to increase slightly due to the predicted, Bank of England Base Rate increase on the 11th of May.
Mortgage interest rates have been increasing again over the last fortnight with large Mortgage lenders like Barclays Bank, The Coventry Building Society, Virgin Money and Nationwide increasing their rates by up to 0.45% along with many other lenders.
With the cost of living meaning that people are struggling to pay their bills on time, criteria search platforms used by professionals reported a big increase this month in Mortgage Brokers searching for lenders that will accept poor credit, with the highest search being for lenders that will accept late or missed payments.
Mortgage interest rate increases are in the headlines most days, however, what isn’t in the headlines so regularly, is what Mortgage Professionals are seeing, this is, that their customer have used up their savings, started relying on credit cards and loans, but because household income hasn’t increased in line with the cost of living, the trend is, people struggling to pay their monthly outgoings, and needing help to get their outgoings under control before they can’t afford to pay their bills.
Mortgage Brokers have never been so important! In this ever changing market, where lenders are changing their criteria and tightening up on affordability, along with customers having more borrowing, and more monthly outgoings for basic living expenses, Mortgage Advisors are finding it increasingly difficult to place mortgages, but they will hugely increase your chances of having your mortgage application accepted, because they are up to date with everything involved in getting a mortgage and have a vast amount of experience and professional tools to assist them.
How can you lower your monthly outgoings, with the mortgage rates increasing? There are options; get in touch with the company you owe and ask if they can offer any help. Speak to the Citizens Advice Bureau, and if you haven’t already, cut back on spending if that’s possible, however, aside from the cutting back, most other options will result in your credit report being affected, which in turn can increase the interest rate you will pay on your mortgage when you need to remortgage.
Alternatively, talk with a Specialist Mortgage Broker who has expertise in debt consolidation, they can help you lower your monthly costs by adding some or all of your debt to your mortgage, making your monthly payments more affordable in the short term. Then work out a budget plan and stick to it so that you don’t end up in the same situation again.
Can I get a debt consolidation loan with bad credit?
If you’ve struggled with debt in the past and have a low credit score you may not be offered the best interest rate, however there are specialist lenders that do offer debt consolidation remortgages.
At the end of the day, we are all in this cost of living crisis together and Mortgage Brokers have experience, knowledge and tools available to find the best solution to help you.
It is important to consider the implications of adding your debts onto your mortgage. Your home may be repossessed if you do not keep up repayments on your mortgage.