The current state of the remortgage market is iffy at best.  Lender competition has heated up in the last few months prompting many to reconsider that long overdue remortgage on a current property.  Increased competition has also created a possible environment in which new properties are sometimes more appealing than applying for a remortgage.  Although the latest round of increased competition is attractive to remortgagers, other factors must be at the best levels for it to be a successful arrangement.

Remortgage interest rates are appealing to many since the inception of the government initiative, Funding for Lending scheme.  Lenders are seeing subtle increases in not only original mortgage loans, but remortgage loans as well.  One issue preventing many from taking advantage of the scheme is the down payment required for the loan.  Even though the interest rate is attractive, a deposit of sometimes 35% or more is required to qualify.  For those remortgaging, it is typically a time of necessity for a new loan and not just a check on the market.  For that reason, a huge surplus of cash on hand is usually not the case and so the deal, although attractive, is not a possibility.

A remortgage can increase one’s financial picture greatly.  Not only is arranging a lower monthly payment possible, ending up with a decent amount of extra pounds at its conclusion is usually part of the deal as well.  The increase in competition has been great for many remortgagers, time will tell if the competition can continue to be an impact to the housing industry.