Remortgage efforts are not likely to get easier in the days ahead which will make it more important for homeowners to be prepared to remortgage when needed as well as willing to seek help when needed.  There are guidelines that will take place next year that are a part of the new rulings by the Financial Services Authority to make sure that lenders are not putting consumers in the path of financial harm by offering lending to those that cannot afford it.  The tightened criteria are meant to help borrowers but it will impact them and make lending more difficult to attain.

Lenders are also going to be tightening lending in the near future as conditions in the eurozone continue to show a weakening in their economy as well as that of the global market.  A more cautious outlook will make lenders contract their lending levels and to increase their interest rates in an effort to ward off those borrowers that cannot afford the loans as well as strengthening their effort to make a profit in the face of less lending.

Borrowers, including those seeking a remortgage, will see higher interest rates offered on the deals from lenders.  Lenders will continue the trend that started at the end of last year of pulling the cheaper remortgage deals and replacing them with slightly higher interest rate levels.  The very best deals will be reserved for those that seek low loan to value (LTV) levels in the 50 to 60 per cent level versus those seeking the higher LTVs of 80 per cent or more.

Homeowners should seek whether they should begin shopping for a remortgage.  They should become aware of their current mortgage term and know when it will end and if a remortgage would be helpful.  If they have complicated issues that could make a remortgage difficult such as a recent divorce or bad credit then a remortgage broker could be helpful as they will know which lenders are willing to work with homeowners with complicated remortgage issues.  With remortgages to become more difficult to attain homeowners should be willing to prepare ahead and be willing to shop around to achieve their remortgage goals.