Remortgages set to soar

Many homeowners aren’t waiting for mortgage rates to go through the roof – which is why remortgages are set to soar in 2008.

Remortgages are essential for those homeowners facing a hike in their mortgage repayments as their fixed rate terms come to an end. By shopping around or using a broker who has access to a wide range of remortgage products, it’s possible to find remortgages at competitive prices. The reality though is, if you have had credit problems in the past, you may struggle to find a lender and if you do, the likelihood is you’ll pay a higher rate. But that doesn’t mean you can’t find competitive remortgages by going to the experts.

Act now – remortgage

Lenders have tightened criteria as well as increased the rates for remortgages, but financial experts are strongly advising that homeowners looking to remortgage act sooner rather than later. For one, the economy could (as many predict) get worse leaving you in a fix if rates continue to rise. It’s important to consider remortgages rather than allowing your fixed rate to simply come to an end. If so you could end up being put on a standard variable rate, which could be anything above 7%. Remortgages are one way of ensuring you shop around for the best rate possible.

Remortgages and rescue packages

Remortgages aren’t just about saving pennies – in 2008 the number of home repossessions, bankruptcies and insolvencies are expected to go through the roof. Remortgages could save you the money from rising rates that could push you closer to the financial abyss. For some looking at remortgages packages, it can be tempting to opt for the cheapest possible option, namely interest only repayments. But this is only a short term solution and you can end up with a debt if you don’t put money aside to pay for the outstanding capital. This kind of remortgage however can work for a year or so to help reduce outgoings.

Remortgages – the alternative to arrears

Remortgages work in many ways and by choosing the right one for your situation you could salvage your finances. Extending your mortgage repayment term, for example will reduce your monthly repayments. Or by over-borrowing, say by an extra £10,000 on your remortgage, you can immediately pay back that £10,000 which will give you more options – the equity will usually make you eligible for mortgage holidays for example. Although extending your mortgage, interest-only options and remortgages can cost more in the long term, they are a more attractive alternative to going into arrears.

Get help on remortgages with Homebank
If you are thinking about a remortgage, let the experts save you time and money by finding the right remortgage for you.

Homebank have qualified mortgage consultants ready to advise you with all your mortgage and insurance needs. For informative, insightful advice on remortgages, call us to arrange a no-obligation appointment to suit you.

Homebank are the “people’s mortgage broker”, with thousands of mortgage products to choose from, including some that are not readily available on the High Street. Homebank’s experienced consultants could find the ideal remortgage for you. Call Homebank now, free, on 0800 052 3604.