What Will Be The Fate Of Mortgages And Remortgages In The Future?
July 5, 2011
The changes witnessed in the past few years in the mortgage and remortgage sectors has been enormous.
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, as well as securef loans whether as debt consolidation loans or not.
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.
With property prices falling people were put off wanting to move house and this lead to a fall in the demand for mortgages.
As prices of property fell the requests for remortgages dropped as many were unable to obtain a remortgage at a low rate of interest.
Remortgages as have mortgages have interest rates starting at 1.98% but this is for borrowers who have at least a 60% deposit, and for those with a minimum of 30% deposit rates are available from 1.99%
Since April 2009 house prices did start to rise in consecutive months and a glimmer of hope was seen in the remortgage and mortgage sectors.
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.