Are You in Mortgage Limbo?
It is estimated that 2.3 million homeowners are eligible for remortgage and have yet to seek one. Those 2.3 million, or 28 per cent of all homeowners, are now on their lender’s Standard Variable Rate (SVR) having moved there at the end of their timed fixed or tracker deal. Looking to move out of that SVR is what most remortgage hunters would be after.
The Yorkshire Building Society released a research report showing that out of those 2.3 million in an SVR about 75 per cent have built up 15 per cent equity and are eligible for remortgage. Should home values decrease again with a double dip in the housing market that equity will fall. Many homeowners may be holding back from a remortgage. Due to a hit on their credit history due to the economic hardships faced by many. Another delay for some could be mounting debt. These two categories of homeowners would do well to seek advice from a broker or remortgage lender. Remortgage can be used to consolidate debt and relieve financial pressure. Those with bad credit have options as well and there are remortgage brokers who specialize in working with bad credit laden borrowers. Analysts suggest that all homeowners should give their mortgage a check-up. Look at your papers and contact your current lender to see where you stand in your current mortgage. Then if you find you are one of those in limbo, review your options to see if a remortgage would be right for you.