Remortgage Demand Slowing While Lending Begins to Tighten

Remortgage Demand Slowing While Lending Begins to Tighten

Homeowners could have an opportunity to save money and put more cash flow into their monthly budget. There are many low interest rate deals that are attractive and for some could offer a substantial savings. It has been stated by experts that homeowners should review their current mortgage deal and if it is ready to end to start shopping around soon for the best deal. Those that have already had their deal end are especially encouraged to seek out a remortgage, as their lender’s risky standard variable rate (SVR) could have them paying more money than they would have to with a remortgage.

Homeowners slowed down on their demand for remortgaging in July. It might have been an added stressful process they wanted to avoid in the midst of the pandemic. It might have thought to be quick to just allow their lender to move them to their SVR. It might have been that with the pandemic there was much more to take up their priority attention. The reasons could be highly varied and the result was homeowners didn’t take advantage of the opportunities available.

Now, many lenders are reaching their limits as to how many loans they will offer at the current low interest rates. Many have begun to pull their best rate deals leaving fewer remortgage products on the market to choose from. Others have been replacing them with higher rates, and in some cases adding restrictions that are pushing the best deals out of reach of many.

It all means lending appears to be tightening with some lenders.

Remortgage brokers might be the better option for homeowners wanting to take advantage of having someone working for them to find the best deal, as they work with many lenders at once. They also often have exclusive deals that aren’t offered directly to the public. It might be the right path for some homeowners to get the best remortgage possible.

By reviewing one’s current mortgage, a homeowner can determine when the best time to start shopping around for a remortgage would be and mark the task on their calendar. For those that have had their term end or are close to it, the best time to start shopping has passed, so it could be to their best interest to take action now and discover what savings are available before they miss out.

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