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

Borrowers with bad credit are still having problems arranging second motgages and will continue to do so for the foreseeable future. This situation is not going to change overnight. The banks have damaged their ability to lend and borrow, perhaps permanently.

Mortgage rates will continue to rise over the nex Year and will eventually force realestate valuations even lower than their current values.

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

In the end, no mater the damage to one’s credit rating, the result is without doubt the same – increased fees.

There is no escaping from the current mortgage environment, until such times as the financial institutions have been stabilized and are once again free to lend in a rational style. How long this will take to achieve is an unknown. More than 45 banks have gone broke this year in the United States alone. Similar issues beset the Spaninsh 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 damaged credit will continue to be costly.

By N2H