Remortgages - Demand on the Increase

Acquiring mortgages in the face of the current property market malaise is increasingly difficult and this is especially true for those who have bad credit histories. As such, the number actively seeking out mortgages appears to be on the wane whilst the number of homeowners seeking remortgages on their properties is on the increase. According to research conducted by the Mortgage Advice Bureau (MAB), the number of remortgages went up by 27% in the last year. This may well be as a result of many homeowners looking to release some of the equity that is tied up in their homes which they wish to utilise to tackle debt problems which are increasingly frequent as a result of the credit crunch fall out.

Remortgages - Tackling Debt Problems

It goes without saying that the current economic situation in the UK has caused significant belt-tightening by the majority of homeowners up and down the UK. The effects of the credit crunch aren’t just impacted upon homeowners, it is also causing property nightmares for first time buyers who simply cannot afford the mortgages required to get onto the property ladder. The upshot of this situation is that mortgages are giving way to remortgages in terms of loans being sought. Remortgages offer many advantages to homeowners ranging from saving money each month by finding a superior mortgage deal to releasing equity in the home for improvements or to tackle debt problems.

Remortgages - Noticeable Shift

According to the report on My Finances, the research conducted by the Mortgage Advice Bureau discovered that there has been a noticeable shift from purchases to remortgages. A stark example of the new emphasis towards remortgages is that 50% of MAB’s work was for remortgages in the first quarter of 2008 compared to 36% the previous year. Speaking to My Finances, property expert, Brian Murphy states, “The ongoing credit crunch cyclone is continuing to test borrowers’ resolve. With less people choosing to buy, increasing levels of business now comes from remortgages clients. Within the mortgage arena, the demise of the 100 per cent mortgage also indicates a relatively bleak outlook for first-time buyers.”

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