Mortgagegs and remortgages have been at their lowest ebb of popularity since the recession and more than ever previously.
The price of properties fell over the last two years, and coupled with massive redundancies throughout the UK fewer were buying properties either as first time buyers or home movers
Now that property prices are rising and in fact in November records showed that that was the seventh month in a row that prices had risen, more people now feel that there is hope in the economic future of the country in general and as a result they are feeling confident enough to buy a property.
Everyone needs a nmortgage to buy a house unless he or she happens to be rich.
House prices in November were the best since August last year with the average home in the UK now costing just under £163,000.
House prices stopped falling in April 2008, and have not experienced any lowering of price since that date.
Although October and November prices only rose by half of a percent which is in fact the lowest rate since April when falls in house prices ceased.
House prices are now 2.7% higher that at the same time last year, and demand from people seeking a mortgage has risen accordingly..
Mortgage approvals for those wanting to buy a home rose in October to 57,345 making it the eleventh consecutive rise.
The housing market has made substantial steps to revcovery during the course of 2009, and house prices have been helped by a shortage of properties for sale.
The mortgage market has no doubt improved but it is a little too soon to be sure about remortgages.
Remortgages have declined over the course of the last two odd years, but remortgages should also be given a helping hand with the improvement in property prices.
In the past, when a home owner came to the end of his deal with his current mortgage provider he frequently sought a remortgage from a different mortgage lender to obtain a better rate of interest.
However the best remortgage interest rates are reserved for homeowners with a lot of equity on their property and the fall in house prices meant that fewer would be eligible for these low rates.
The current on going rise in property prices will now however lead to more homeowners being in the frame for a low rate when he remortgages.
Over the last two years many stayed with their current lender and went on to their standard variable rate as that was the cheapest option.
As property prices have gone up many will have bett er equity in their homes, and changing their mortgage provider will now be the better choice to obtain a lower rate for a remortgage.
The Woolwich has a tracker product at 1.99% for homeowners who have a minimum deposit of 40% and the Alliance and Leicester has a tracker at 1.99% for homeowners with a minimum deposit of 30%.
The rise in property prices will correspondingly cause a rise in mortgages and remortgages.
Monday, January 4, 2010
Mortgages Soar While Remortgages Stagnate
The financial situation in the UK in general is at an all time low.
The UK has only previously been in such financial crisis when at war.
It was to be hoped that the Budget this week might contain some little gems that would help the recovery but unfortunately this was not to be.
In fact certain aspects of the Budget such as the raising of National Insurance Contibutions that employers will have to pay for their workers will only cause some companies already struggling to survive to even lose their fight for survival.
It will even lead to further redundancies at a period when redundancies have reached epidemic proportions
In the midst of all this eonomic depression there was a glimmer of hope this week with the announcement by The Council Of Mortgage Lenders that mortgage applications had risen in October to the highest level since December 2007.Mortgage applications rose to 55,000.
There are still citizens who feel that they are financially in a good place at the moment.
As mortgages are the home loan product necessary to purchase a property, this increase in mortgage applications shows that at least some people are oonfident enough in their own financial stability to either buy their first home by taking out a mortgage or they feel that the time is right to move to another property.
Most of these will be moving to a bigger more expensive property as if they were down sizing frequently there is no need for a mortgage as the profit on their current property should make them mortgage free.
Mortgages appear to be moving in the right direction with the figures for October being 33,000 more that those in January.
However the news from the remortgage front is not the same as for mortgages.
Mortgages are the home loan required when buying a property whereas remortgages are the product which replaces an existing mortgage, and an be on a like for like basis or to release additional funds for any purpose.
The majority of homeowners in the past remortgaged at the end of their current deal which could last from two to five years after which there was no early repayment penalty.
Even those who would like to remortgage find that they are being declined due to insufficient equity in their property.
Underwriting criteria for remortgages is not nearly so lax as it one was.
The Council Of Mortgage Lenders has been keeping records for more than seven years now, and the number of remortgages granted in August this year being only 30,000 made it the lowest month in all these years.
It is difficult to understand why remortgages have been so badly affected by the recession as rates are at their lowest rates ever for those with good equity in their property.
There are homeowners who have equity and for those with an equity margin of 70% and 60% rates of 1.99% and 1.98% respectively are available on a tracker product.
As such it makes little sense that remortgages have fallen so badly while mortgages are on the up.
The UK has only previously been in such financial crisis when at war.
It was to be hoped that the Budget this week might contain some little gems that would help the recovery but unfortunately this was not to be.
In fact certain aspects of the Budget such as the raising of National Insurance Contibutions that employers will have to pay for their workers will only cause some companies already struggling to survive to even lose their fight for survival.
It will even lead to further redundancies at a period when redundancies have reached epidemic proportions
In the midst of all this eonomic depression there was a glimmer of hope this week with the announcement by The Council Of Mortgage Lenders that mortgage applications had risen in October to the highest level since December 2007.Mortgage applications rose to 55,000.
There are still citizens who feel that they are financially in a good place at the moment.
As mortgages are the home loan product necessary to purchase a property, this increase in mortgage applications shows that at least some people are oonfident enough in their own financial stability to either buy their first home by taking out a mortgage or they feel that the time is right to move to another property.
Most of these will be moving to a bigger more expensive property as if they were down sizing frequently there is no need for a mortgage as the profit on their current property should make them mortgage free.
Mortgages appear to be moving in the right direction with the figures for October being 33,000 more that those in January.
However the news from the remortgage front is not the same as for mortgages.
Mortgages are the home loan required when buying a property whereas remortgages are the product which replaces an existing mortgage, and an be on a like for like basis or to release additional funds for any purpose.
The majority of homeowners in the past remortgaged at the end of their current deal which could last from two to five years after which there was no early repayment penalty.
Even those who would like to remortgage find that they are being declined due to insufficient equity in their property.
Underwriting criteria for remortgages is not nearly so lax as it one was.
The Council Of Mortgage Lenders has been keeping records for more than seven years now, and the number of remortgages granted in August this year being only 30,000 made it the lowest month in all these years.
It is difficult to understand why remortgages have been so badly affected by the recession as rates are at their lowest rates ever for those with good equity in their property.
There are homeowners who have equity and for those with an equity margin of 70% and 60% rates of 1.99% and 1.98% respectively are available on a tracker product.
As such it makes little sense that remortgages have fallen so badly while mortgages are on the up.
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