Be Smart And Avoid Self Employed Mortgage Problems Now

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If you are struggling to pay for your self employed mortgage each month and are worried that next month might just be a bridge too far then you have to be proactive and take care of your mortgage before it gets the better of you and your business.

This message seems to be spreading, because according to Experian, UK business insolvencies hits lowest rate in January since June 2007. Businesses across the UK saw an 8% improvement in their financial strength and the rate of insolvencies fell to 0.07% in January 2010, with just seven in every 10,000 businesses going under. This compares to an insolvency rate of 0.09 per cent in January 2009 and 0.11% in December 2009.

The highest insolvency rates during January 2010 were among businesses with 11 to 100 employees, and one to two employee firms had the lowest rate of insolvencies.

Rolf Hickmann, managing director of pH, an Experian company, says: “It’s encouraging to discover that not since the current financial crunch started have so few firms become insolvent in a single month. Whilst it is too early to predict whether we are fully out of the woods, this does hint at an improvement in the health of UK businesses, something which is reinforced by the financial strength view provided by January’s data.”

The people who have the most financial strong small firms are those who are in charge of their finances. That includes their mortgage, which they have budgeted for, are actively working to reduce or are at least comfortably managing the interest repayments.

If your business is suffering and your mortgage is too then it is time for a financial MOT. Talk to a self employed mortgage expert about taking out a new loan, budgeting to manage the loan you already have or exploring alternative forms of credit.

SOURCE: Experian, 19/02/10

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