| What Will Happen To Mortgages And Remortgages In This New Year? |
| Articles - Mortgage |
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Remortgages and mortgages have been through a lot of ups and downs for almost three years now.
Remortgages and mortgages have been through a lot of ups and downs for almost three years now. Before the credit crunch remortgages and mortgages did vary slightly in popularity and in the number of remortgage and mortgage applications made each year, but they never altered from month to month or year to year in the way that they have done since the advent of the credit crunch. The fact that property prices have dropped has lead to a fall in the requirement for mortgages and remortgages. A mortgage, as is probably well known, is the home loan needed to buy a property whether to enable a first time buyer to get his foot on the first rung of the property market or whether to allow a homeowner to buy a new property. Many in the UK who in the past would have been only to ready to buy a second or subsequent property, and for this would have needed to obtain a mortgage, have put off doing so due to a fall in the price of homes. Remortgages similarly fell as property prices fell due to the fact that many prospective remortgage borrowers were no longer able to obtain low rate remortgages. There are certainly low rate remortgages in the market but they are only available to homeowners with at least 30% equity on their property. When property prices commenced on an upward trend every month from April on, it was expected that mortgage and remortgage applications would follow in their wake. For a short time remortgages and mortgages did become more popular. The BSA, that is The Building Society Association has announced that they expect the mortgage market to maintain its depressed state this current year which is extremely disappointing. We can only cross our fingers that the above announcement proves to be wrong as the new year moves on from these initial few days of 2010. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. |