Debt Consolidation – Mortgage Mayhem
It's a confusing scenario: the Bank of England has cut its interest rates for the third time in five months, so why are banks charging more for their mortgages rather than passing the cuts on? Banks have been accused of fattening their profits at their customers' expense as more homeowners are being pushed into debt consolidation loans to meet increased mortgage payments. Some of the UK's leading mortgage lenders are over-stretching homeowners by adding price increases onto popular mortgage products and home loan offers.
Debt consolidation help amid repossession fears
Debt consolidation is a reality for those who took out a mortgage at a favourable rate, but have recently woken up to the shock of increased mortgage repayments as their fixed rate contracts end. For many, their incomes haven't increased to match the rising expense, leaving a deficit with the threat of financial meltdown: without efficient debt consolidation help, there is fear that repossessions will rise.
Mortgage rates rise to safeguard banks' profits
More people are turning to debt consolidation help as lenders withdraw competitive mortgage deals as a reaction to the credit crunch and housing market dip. Lenders that have raised rates include Nationwide; they announced they were raising fixed-rate deals and withdrawing a host of competitive packages. Abbey and the Woolwich raised their rates, as did Alliance & Leicester who raised fixed rates for the second time. Customers of these banks may be eager to find debt consolidation solutions to help manage their existing debt and the prospect of increased debt.
Get debt consolidation help before recession hits
For those already dealing with credit card debt and loans, the news is bleak. Nationwide has put fees up by 40% on some products – a hike that is unmanageable for those who are financially over stretched. Debt consolidation advice can help those facing up to the increases by offering strategies to manage their future finances. The Guardian newspaper quoted Vince Cable, the Liberal Democrat treasury spokesman on mortgage mayhem: “There is currently a fundamental disconnect between the Bank of England's interest rate and the rates high street banks are willing to offer customers. There is a serious concern that some banks are using the current economic climate as an opportunity to increase profits.”
It's a galling situation to be in for homeowners who find themselves victim to the banks' rate rises; debt consolidation help is available and should be a priority for those struggling with debts as economists predict a wider recession lasting well into 2009.
Speak to Kensington Finance for debt consolidation and debt management solutions.
Kensington Financial Management Consultants Ltd is a total finance solutions company helping people all over the UK. We speak financial sense. We will allocate you a friendly advisor who will chat through your current situation and formulate a plan for you without obligation. Let us work out a financial solution based on your individual circumstances. It's our aim to help everyone who contacts us. With debt solutions from debt management and IVAs, mortgages & re-mortgages, secured & unsecured loans and advice and information for debt consolidation, bankruptcy and Trust Deeds, we can help. It really is worthwhile giving us a call or applying online today for a confidential chat with one of our friendly advisors. Call FREE on: 0800 096 4409.