Lender Competition Increases Interest in Remortgages
The UK housing market is still awaiting more activity on the remortgage side and it appears that the latest wave of lender competition is generating it. Many house owners are still unaware of the low interest rates available through a remortgage, but as time passes and the buying season gets closer that could possibly quickly change. A recent poll indicated more than 30% of brokers are seeing more remortgage interest from house owners. This increase has been mainly due to the increased competition due to the Funding for Lending scheme announced last year.
Jock Cassidy of Ashley Law commented on the latest demand for remortgage products, saying: “Consumers have got a lot of cash flow problems so they if they can get one at a reasonable rate they are very to do so.”
Cassidy continued: “There is a lot of lethargy across the country so it does need promoting to clients.”
Remortgages remain somewhat of a mystery to many house owners. Unless a remortgage broker contacts them directly, house owners possibly do not even know there is a process like a remortgage. For those who do know what a remortgage is and does, the benefits can sometimes be overwhelming.
A remortgage brings with it the possibility of lowering a monthly mortgage payment. Additionally, a remortgage can possibly result in cash in hand which could be used to pay off old debt, make improvements to the existing house, or even take a family on a much-needed holiday.