The news of a double dip recession is now making its way around the UK.  Consumer confidence will certainly take note of what this means and housing market figures will more than likely reflect the unfortunate news.  Remortgage and original mortgage products will be in competition with one another from various lenders like never before.  A double dip recession will not only impact the housing market numbers, but number in adjacent markets as well.  The construction market is one which will also be affected.

Remortgage demand as well as remortgage lending approvals could see an impact by the recent news that the GDP for the UK slipped in the final quarter of 2011.  Economists seem to be optimistic that the recessional trend will be short lived and that growth will return to the economy quickly.  This will be good news for homeowners that are in need of a remortgage.  Cautious lenders do not offer the best remortgage deals nor do they easily give out approvals when there appears to be a lot of risk in lending.

Remortgages and new purchase mortgage approvals contributed to the recent 19 month high for mortgage approvals in December.  The British Banker’s Association (BBA) reported there were 36,171 approvals the last month of 2011 which was an increase over the November numbers of 34,809 approvals.  Net mortgage lending was £734 million which was a large increase over the £465 million in the previous month. 

Remortgage lending may be the victim of another recession.  The news that the UK is in the middle of a double dip recession for the first time in almost four decades will not sit well with lenders.  There is also information that the private sector plans to cut jobs rather than create jobs and hire which is another blow to economic recovery.  Lenders had grown cautious as the eurozone news heightened over difficulties and now with the latest news about the economy lenders will only grow tighter fisted with their funds.  Remortgage lending will be tighter and the best deals are going to disappear.

Remortgages may be harder to come by as lenders become more cautious in their outlook on risk of lending to borrowers.  For homeowners that have yet to remortgage they will not only find the best remortgage deals have disappeared and have been replaced with higher interest rates but that approvals are hard to come by in the face of a second recession.  Recent data on the GDP has shown that the UK economy is in the midst of a second recession and lenders are paying attention to the outcome expected.

Taking on a mortgage or remortgage includes more than just the expense of the associated interest rate.  There are closing fees as well as other lending accompanying fees.  Arrangement costs are fees which can be overlooked or simply forgotten about.  In the midst of the excitement and enthusiasm surrounding the process of obtaining a mortgage or remortgage, fees and other important details can often get left behind.  It is important when considering a mortgage and remortgage to put the best chance of obtaining a smart deal by working with a specialist.