The changing
remortgage landscape

As house prices continue to fall, attractive remortgage deals are becoming more difficult to find. So it’s important to find the best deal that's right for you and your particular situation. Unfortunately in this current economic climate the remortgage market landscape has changed without all recognition. Lenders are increasingly looking to attract borrowers who have higher levels of equity in their homes, a paradox when prices are falling.

There are however some positives, as the housing market is showing some signs of stabilising. According to figures from Halifax, the number of mortgages approved to finance house purchases was broadly unchanged in September 2008 for a third successive month, at a seasonally adjusted 33,000 compared to 32,000 in August 2008. So if you find yourself in the position where you are looking to remortgage during this ‘credit starved’ economic climate, what should you consider?

How to remortgage in the current financial climate

Take professional advice
With mortgage deals coming and going very quickly it's important to talk to a professional adviser who can research the market for your particular requirements. An independent mortgage specialist can advise you on the whole of the market, which is essential if you want to obtain the best deal when remortgaging.

Time is of the essence
If you go it alone and take your time doing your own research, you may actually miss out on a good deal. So one of the benefits of taking professional advice is that your adviser can act quickly on your behalf, and some lenders will even let you reserve a rate six months in advance before your remortgage deadline.

Existing lender solutions
Your existing lender will be keen to retain your business. Some banks offer product transfers to existing customers which may also save you time and money as there may not be additional costs involved in setting up the new mortgage.

Consider using your savings
As lenders become more selective about choosing customers with higher equity in their property, it may make good financial sense to use some of your savings to pay off more of your existing mortgage. Overpaying before you look for a new remortgage deal could improve the choice of loans available to you. However, your adviser will check with your current lender, as this can sometimes incur a fee which will be stipulated in your terms and conditions of your current deal.

Increasing your credit score
Lenders have a responsibly and duty to ensure that all risks are mitigated when assessing a consumer's suitability for borrowing. Any blemish on your credit history can be taken into account, so keeping your payments up to date is important. You can obtain a copy of your credit report online from Experian, Equifax or CallCredit. Check it carefully and correct any information that is wrong. In addition, close down any unnecessary accounts.

Source: Halifax

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