Homeowners are facing a growing problem in the current economy.  There are hundreds of thousands of homeowners that cannot remortgage because they have sunk into negative equity.  Others cannot remortgage because they are facing low loan to value levels on remortgages and they do not have adequate equity to get a new deal.  Those that cannot remortgage either have converted or will be converted at the end of their current mortgage deal to their lender’s standard variable rate (SVR).  Once converted if they do not remortgage they will be facing rising interest rates on their lender’s standard variable rate (SVR).

Those that can remortgage are facing higher interest rates and tighter lending.  Lending costs have risen and lenders are now sharing the cost with existing customers and new borrowers.  They are increasing their SVR levels for existing customers and they are increasing the interest rates on their remortgage and mortgage offerings.  They are raising the fees associated with some of their cheapest deals so customers are encouraged to consider any fees on a remortgage deal to make sure the deal is as good as it looks.

Experts suggest that homeowners get familiar with their current mortgage deal and be aware of when their current term will end.  Being ready to remortgage will assure that the homeowner can avoid the rising SVR levels.  It will also help the homeowner get in to the remortgage lending market quickly to choose from the cheap remortgage deals available before they are changed.

If the homeowner will have a complicated remortgage it could be helpful to consult a remortgage broker.  Remortgage brokers can assist with remortgage deals that cannot be found outside of a broker and they are familiar with which lenders are willing to lend to homeowners with bad credit, a change in jobs, low equity, and other issues that can complicate getting a remortgage.