Bank finance articles and tips

In mid-April, 10 companies raised interest rates for new borrowers and from this month, more than one million homeowners on a standard variable rate (SVR) mortgage will see an increase in their mortgage payments. For those already faced with the prospect of redundancy, even a small rise in mortgage payments can push people into needing debt management solutions to help them make ends meet.

The lenders who have already increased their rates include the Halifax, the Co-operative Bank and Clydesdale and Yorkshire Bank, Santander and the Chelsea Building Society.

It is reported that Halifax customers face an increase from 3.5% to 3.99% and could have to pay as much as £200 a year extra on a SVR mortgage. For those on low incomes or Jobseeker’s Allowance, debt management may be the only solution left to help them hold onto their homes.

More and more consumers are seeking debt advice simply to be able to live and keep their families together in a difficult economic period. Homeowners with outstanding credit cards and bank loans need to act and seek debt management help as soon as possible if they find they are unable to pay their mortgage.

Consumer champion Which? has estimated that if mortgage payments rose by £100 per month, 20% of homeowners would not have sufficient money for essentials like food – and 11% would not actually be able to pay their mortgage.

Some of the consumers questioned said that the rises in mortgage payments were “a disaster” or “devastating”.

Debt Local advises anyone who has outstanding debts and a mortgage to seek help from a reputable debt management company sooner rather than later.

Debt Local will offer the best debt advice for individual circumstances and we will direct you to the right provider if we are unable to arrange the required solution ourselves. Our initial advice is free and we do not cold call or send unsolicited emails – most of our business is via word-of-mouth recommendations.


AUTHOR BIO:
The article is a courtesy by Eva Smith who represents Debt Local, a professional and friendly organization offering debt help and free debt advice to UK people to manage debt problems with best & favorable debt solutions. It has expert Debt Advisors who counsel and comfort clients with the commitment of confidentiality just like a personal financial consultant. Moreover People seeking debt advice have No Obligation to use the services.