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Consumers looking to remortgage could experience problems

August 24, 2008 by admin  
Filed under News, News-Mortgages

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With lenders raising the borrowing costs on their standard variable rate interest mortgages, and many people due to come of cheap mortgage deals, there are many homeowners that may be thinking about remortgaging in order to ensure a more affordable deal as their existing mortgage deal draws to an end. However, some industry officials have said that many of those looking to remortgage could experience real difficulties.

There are a number of problems that are affecting the ability of homeowners to get a good deal on a remortgage, and this includes the severe lack of mortgage products available on the market, increased interest rates, higher deposit requirements from lenders, and tighter credit conditions. However, there is also another problem that is making it very difficult for those that are looking to remortgage.

According to some industry officials one major problem that could cause issues for those wishing to remortgage is the fact that it has become difficult to tell what is going to happen with the base interest rate.

Up until a couple of months ago many industry officials were convinced that the base rate would continue to fall over the course of this year, having already fallen several times since December.

However, since this time the level of inflation has soared way out of control, and now stands at nearly twice the government target of 2%, having rocketed to 3.8%. Even the governor of the Bank of England has indicated that this could seriously impact any future interest rate falls this year, but the uncertainty could make it difficult for homeowners to decide what sort of remortgage option to opt for.

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Tags: tighter credit conditions, Interest rate stays, Insurance, uncertainty, future interest rate

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  1. Many people could find it even more difficult to sell their homes says:
    August 24, 2008 at 4:59 pm

    [...] Consumers looking to remortgage could experience problems [...]

  2. Paying Too Much To Reclaim Your Bank Charges? says:
    August 28, 2008 at 2:32 pm

    [...] Consumers looking to remortgage could experience problems Tagged as: bank charges, reclaim bank charge [...]



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