Homeowners hoping to remortgage may be stuck out of reach as badly as hopeful buyers are out of reach of home ownership.  The ability to remortgage would be helpful to homeowners that are on a tight budget and need a set interest rate to rely on just when lenders are raising their standard variable rates.  There are those that could benefit with a lower interest rate as well. However, there are many that despite the low interest rate offerings from lenders that cannot obtain a remortgage.

The decline in property values due to falling house prices has left many homeowners without enough equity to remortgage.  Some homeowners were plunged into negative equity which occurs when the property value falls below the mortgage debt on a property.  Homeowners in negative equity cannot remortgage. 

The only way to get a remortgage when a homeowner has little to no equity is to include a cash deposit into the remortgage deal.  This means a homeowner will need to save money in an economic time when most households are struggling to make their monthly mortgage payments.  The ability to save is hindered with such low interest rates on the savings available.  The same low interest rates that are attractive to a borrower are hindering the borrower that also needs to supply a savings built deposit.

Home buyers have been kept from ownership due to the high level deposits required on low loan to value deals.  The same is seen in the remortgage arena where homeowners are kept from a helpful remortgage because they too cannot meet the low level loan to value deals offered by lenders.

A few lenders have recently put on the market higher loan to value offers which if followed by other lenders could lead to a trend that will open up financial opportunities to home buyers kept from a purchase and homeowners kept from a helpful remortgage deal.