Mortgage lending is tightening as the amount lent to a borrower in proportion to their income is being lowered by many banks. Santander, Barclays, and TSB have all lowered their threshold for lending to first time buyers. Mortgage lending is limited to 4.5 times annual income. Other lenders are expected to follow suit and make the same restrictions.

The change is credited to the restrictions the Bank of England introduced to lenders. They are restricted from advancing more than 15% of their total new homeowner mortgage lending at 4.5 times income or above. This in turn will push lenders to find ways to tighten their lending and making restrictions on borrowers that fall in line with their own restrictions on lending.

The changes are meant not to restrict borrowers, but to keep borrowers from taking on mortgage debt they cannot afford.

Mortgage and remortgage demand has remained low and that has pushed lenders into a more competitive mode at gaining the attention of borrowers. Interest rates have remained low and in some cases at historically low levels for lenders. This trend may not continue however as lenders are tightening up their lending practices.

Those seeking a remortgage have many attractive factors involved to make this a good time to consider getting off of the fence. There are low interest rates, deals with incentives to make the savings even greater than that offered by the interest rate alone, and equity levels of properties have been rising.

Those seeking a remortgage could find benefit in considering a remortgage broker. Brokers have access to deals that aren’t offered directly from lenders to consumers. Also, don’t be blinded by a low interest rates associated with a deal. A remortgage should be considered at whole value, which includes all costs and all savings involved overall. By looking at more than a low interest rate, a homeowner will find the best deal of all those offered that meets their unique needs.