Analysts have noted that the remortgage market is still slow despite mortgage loan rates at record lows. The main reason could be because many homeowners obtained a remortgage last year. Other homeowners have had cuts to their income, their credit scores have fallen, or they have very little equity in their home. Some are afraid of a shift in income or actually a total loss of income due to losing a job or restructuring of a company trying to remain strong in the economy. Whatever the reason, there is very little activity in the remortgage or mortgage sector.

It is estimated that around 61 per cent of mortgage holders with a 30 year fixed rate mortgage could lower their current mortgage by 0.75 per cent with current loan rates. However it is estimated that only 38 per cent of the borrowers could obtain a remortgage as the others would not be able to qualify.

Mortgage and remortgage applications activity was down 0.5 per cent over a four week average. This could mean that lenders have already reached the homeowners who can remortgage at today’s rates.

New regulations by the Financial Services Authority that will take place on June 30 have been put in place to help homeowners in jeopardy of repossession. Some of the aspects of the new rules help homeowners avoid additional charges and lenders must correctly advise customers of all options available besides repossession. The new help to those facing repossession may have a positive impact on the atmosphere of home mortgages. In addition, those finding relief now may be able to remortgage later on as they find remedy with their financial problems.

To qualify for a remortgage you need a steady income, good credit ratings, adequate home equity built into your home or enough cash for a down payment. With some loan rates as low as in 1950 the remortgage is definitely an attractive consideration. There are other remortgage products available and lenders looking for customers. If you qualify this is a great time to shop around for remortgage options.

How long rates will remain as they are is dependent on the effect of the Budget to the health of the economy. Inflation is expected to rise at first, and how long it remains there may trigger authorities to raise rates. Even with a raise in loan rates, a remortgage would remain attractive to consumers wanting to reduce their debt during the economic crisis.