UK struggles to renew fixed rate mortgages
The end of this summer will see an increase in the amount of personal and corporate bankruptcies. More than 1.4 million households will then have to renew their fixed rate mortgages. Many of these households may then struggle to do so. Those without mortgages may also struggle receiving secured and unsecured loans, so September will be a great month for debt firms.
While the number of bankruptcies has been under control, many individuals and businesses are under financial pressure. But perhaps not for much longer.
One of the largest bankruptcy firms in Britain calculated that some 20,000 businesses might soon be in big financial trouble. This means that corporate bankruptcy work will rise even more, continuing the trend started in 2008’s first two quarters. The first six months of this year has seen a rise of about thirty per cent, much more than that of 2007.
Banks should take more care with their customers, as their debt management arrangements need work. There is the possibility that banks may have difficulty retaining healthy retail divisions.