Interest rates have come become more and more important aspects for people to consider when applying for loans or mortgages. There has been a spate of increases in recent months with more threatening in the near future. This is becoming increasingly likely as some of the cornerstones of the economy become less and less stable. One of those aspects that few people consider is cheap imports. The currency is currently strong which allows the price of imports to be minimised, but this is causing British made products to become increasingly expensive. This is causing a shift in support away from using domestic products due to the price difference.
These interest rate increases are implemented to curb the effects of inflation on the country, but they are still causing huge problems for many people. The recent interest rates have stacked up to provide people who have debts with an ever increasing problem. This is particularly affecting many people who have borrowed heavily, whether to buy property or to use in some other manner. These debts are becoming far more difficult to repay as the interest rate increases causes the monthly repayments to take an ever increasing chunk out of the borrowers income.
These interest rate increases the amount that a person’s income needs to be stretched when they owe money. The amount of people who owe money is increasing at a rapid rate, partially fuelled by the number of people who succumb to their overwhelming desire to buy property. This desire often overrules common sense and pushes people to borrow far more than they can afford in order to buy a property. They juggle their finances and manipulate the figures to show that they can afford the mortgage when in fact they can only just stretch to cover the monthly repayments. If you add the cost of interest rate increases on top of that burden you are likely to be looking at major financial trouble.
A major problem with financial troubles is that they seem to increase. If you get into financial trouble and land up with a CCJ then you are looking at major problems in your future. A CCJ will alter the way traditional banks and lending institutions view you and you become an unacceptable risk when applying for a loan or mortgage. There are still lenders that will provide you with a CCJ Mortgage or a CCJ Remortgage, but you need to find the right place to get them. A CCJ against your name cane cause many institutions to charge you exceptionally high rates of interest in return for permitting you to take out a mortgage or remortgage.