The average house price sits at 169,347 pounds now after the Nationwide house price index reported a fall in prices of 0.5 per cent in July.

Mortgage approvals are falling and overall lending has stalled according to the Bank of England. This will lead to a soft housing market for the next few months at least.

Despite a growth of 1.1 per cent in GDP, the interest rate will not be going up any time soon, says Governor Mervyn King.

Eurozone mortgage borrowing grew last month at the fastest pace in 2 years. Lending for house purchases rose at an annual rate of 3.4 per cent in June. This is the fastest rate since September 2008 according to the data supplied by European Central Bank.

Capital Economics, a consultancy firm, has predicted a pessimistic scenario for homeowners. Due to the influx of homes for sale in the housing market and less buyers in the market, home values will fall. Property prices are expected to fall by a quarter by the end of 2012.

Seeking a remortgage if you have bad credit doesn’t need to be any more stressful or embarrassing than if you went in with a shining credit score. As long as you accept the fact that you will need to be patient to find the right remortgage and that your interest rate is bound to be higher, then you know what to expect. Times are difficult financially and everyone goes through financial problems at some point. There is no reason that seeking a remortgage when you have bad credit needs to be stressful or embarrassing.