The Highs And Lows Of Mortgages And Remortgages.
Mortgages which had seen a tremendous slump over the past two years have seen an improvement with applications for mortgages in October rising to 55,000 which is the best month since December 2007.
This has further reaching implications than one might at first think, as it implies that some confidence is being felt with people being prepared to buy a property, as a mortgage is a requisite to buy a home.
The mortgage applications for the month of October are over double the January applications.
Although mortgages are experiencing a resurrection the same cannot be said for remortgages.
Mortgages are what is required to purchase property while remortgages are the reorganizing of an existing mortgage.
With remortgages a homeowner stays at his current address.
Remortgages really are an ailing product and in the month of August they were at their lowest level since the start of records being kept in 2002.
October certainly showed an improvement on August with 3,000 additional remortgage applications being made.
A contributory fact in the decrease in remortgages is due to the fact that with mortgage lenders restricting loan to values those wanting to remortgage no longer have sufficient equity to allow them to remortgage.
The stricter underwriting and the tightening up of LTV by mortgage lenders means that many people requiring a remortgage cannot obtain one due to lack of enough equity in their property.
People with sufficient equity in their property are in a totally different position.
Remortgages are available at excellent rates for those with equity which makes it seem strange that remortgage figures are so low at present.
For homeowners who have deposits of at least 30% remortgages are available from 1.99% which makes them more than worth considering.
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