Mortgage Lending Rate Slows

Mortgage Lending Rate Slows
The increase in​ interest rates,​ coupled with rising house prices and the​ decrease in​ the​ average consumer’s disposable income is​ increasingly squeezing new buyers out of​ the​ market and making it​ more difficult for existing house owners to​ trade up,​ said Howard Archer,​ Global Insight’s Chief UK and Global Economist.
This,​ in​ turn,​ has had a​ pronounced effect on​ home loans; the​ continuing rise in​ inflation deterring homeowners from borrowing.
Existing mortgages repayments have risen,​ with many homeowners struggling to​ meet repayments,​ leading to​ an​ increase of​ 30% in​ the​ annual number of​ Individual Voluntary Agreements.
A large number of​ homeowners have turned to​ credit cards in​ order to​ manage their finances through difficult circumstances,​ only to​ find themselves trapped in​ a​ circle of​ debt that threatens to​ undermine their credit ratings and restrict future applications for further loans or​ borrowing.
Some homeowners,​ however,​ have found a​ way to​ break that circle of​ debt .​
The emergence of​ mortgage brokers who specialise in​ remortgages for those with bad or​ negative credit ratings has offered a​ solution to​ potential insolvency.
Putting the​ equity in​ their homes to​ good use,​ they are also exploiting the​ annual average growth of​ 10% with regard to​ property prices .​
This offers them more useable funds than they previously thought.
With these funds,​ consumers are able to​ pay off outstanding debts and positively affect or​ ‘repair’ their bad credit ratings .​
The rates of​ interest they agree with their mortgage or​ remortgage lenders will also have been designed to​ reflect their circumstances and allow better future financial management.
Some of​ these lenders offer what is​ known as​ a​ ‘payment holiday’,​ allowing homeowners with remortgages the​ chance to​ settle any immediate debts quickly and then concentrate on​ using their newly-freed funds to​ continue to​ repair damaged credit scores and maintain solvency.
Mortgage Lending Rate Slows Mortgage Lending Rate Slows Reviewed by Henda Yesti on July 02, 2018 Rating: 5

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