Timothy Reynold’s Blog

Refinancing with bad credit is becoming increasingly hard to do. Much of the damage caused to the financial system by over borrowing has yet to be fully felt.

People with damaged credit are still having difficulty arranging and will continue to do so for the foreseeable future. This problem is not going to change overnight. The banks have damaged their ability to lend and borrow, perhaps permanently.

Loan rates will continue to climb over the nex Year and will eventually force home prices even lower than their current values.

For those wishing to remortgage with bad credit the problem may not be insurmountable, but a high price must be paid. Either with higher charges fees or through some other cost.

In the end, no mater the damage to one’s credit rating, the result is invariably the same - increased fees.

There is no escaping from the current refinancing environment, until such times as the banking institutions have been stabilized and are once again free to lend in a reasonable way. How long this will take to achieve is an unknown. More than 45 mortgage providers have gone broke this year in the US alone. Similar issues beset the British banks, and no sign of recovery on the horizon.

The current solution to the problem has not managed to stabilize the system, and will not do so for a time. Refinancing with bad credit will continue to be difficult.