Remortgages – Lending hits all time low

Remortgages, the BBC reports, have never been so crucial but they’ve also never been so hard to get. For the million homeowners plus coming to the end of a fixed rate mortgage deals in 2008, remortgages are the only way out; without competitive remortgages they could end up on expensive variable rates – pushing up their monthly outgoings and putting those homeowners who are already financially over-stretched at risk.

Remortgages – Juggling Debt

Remortgages are increasingly popular as a way to either release much-needed cash from the equity in property, or to reduce monthly mortgage repayments and at the very least, try and maintain existing outgoings and avoid expensive rate hikes. But as the property market shrinks in the response to the credit crunch, the harder it is to find competitive remortgages.

Remortgages and mortgage lending at all-time low

Mortgage lending has reached an all-time low, and this is having an impact on remortgages too. The shrink in the property market is impacting on the kinds of risks lenders will take as they raise their fees and rates to cover their backs. Applications for remortgage have increased and some are successful; according to recent figures, loans for house purchases made up just 30% of all mortgage lending in February. Restrictions in lending means business is shrinking and remortgages are harder to secure. As many property experts expect the situation to get worse, you need to act fast to secure remortgages.

Things will only get…worse

Michael Coogan, director general of the Council of Mortgage Lenders told the press: “We expect this process of further tightening in lending criteria to continue in the second quarter as lenders respond to the challenging market conditions.” If you’re looking for competitive remortgages, you need to act fast. And if you’re juggling existing debt, finding competitive remortgages could be the difference between keeping your home and being repossessed.  

Remortgages face slowdown

As all mortgage products, including remortgages, are subjected to a big UK-wide slowdown, the skills and expertise of a mortgage broker are crucial; lenders who are still offering competitive remortgages and mortgage products are being swamped with applicants. This was evidenced when a leading lender, First Direct, had to put a temporary stop to offering mortgages and remortgages to catch up with paperwork from the deluge of applications.

Speak To Homebank about Remortgages

If you are thinking about mortgages, remortgages or debt consolidation, let the experts save you time and money by finding the right loan for you. Homebank have qualified mortgage consultants ready to advise you with all your debt consolidation, mortgage and insurance needs. For informative, insightful advice on debt consolidation, call us to arrange a no-obligation appointment to suit you. Homebank are the “people’s mortgage broker”, with thousands of products to choose from, including some that are not readily available on the High Street. Homebank’s experienced consultants could find the ideal debt consolidation product for you. Call Homebank free now on 0800 052 3604