The Scotland housing market continues to see increases in housing prices. It’s only natural that the favourable market conditions be reflected in the remortgage market. According to the Council of Mortgage Lenders (CML), a mortgage industry trade association comprised of lenders banks and builders, Scotland’s remortgage volume was 11% higher than that of the previous quarter. During the third quarter of 2009, there were 10,000 remortgage loans with a combined value of £1 billion.

Relaxing the Lending Criteria Makes it Easier

The stabilisation of lending criteria has helped the market to improve. When guidelines were extremely tight, it made it difficult for any borrower to obtain a remortgage loan approval, including those borrowers deemed as credit-worthy. However, as guidelines are relaxed, homeowner confidence is restored. The increase in remortgaging could be evidence of a renewal in borrow optimism.

CML Scotland policy consultant Kennedy Foster also feels encouraged and said, “…the recovery in Scotland has begun… Our expectations are for a slow recovery in the mortgage market across the UK as the economy gradually revives.”

Equity levels have already increased by 4.5%, according to statistics published by Land Registry, the government department that maintains the UK’s home price data. If price increases continue at the same rate, they could exceed 5% by mid-2010.

Making the Move to Remortgage Now

Borrowers who were steered into more costly loans during less favourable times now have the opportunity to recover. Those who remortgage soon could see significant savings over payments on the high-priced loans that dominated the market in early 2009.

Homeowners are advised to get in on remortgaging while the window is still open. There is speculation that things could change again by the fall of 2010. For now, banks are still competing to help remortgage applicants gain access to better rates and terms. Although there are costs involved in remortgaging, there are many homeowners who will still come out ahead.

The tracker loan still seems to be a favorite of many financial experts. However, before selecting your remortgage loan, get the facts you need to decide what’s best for you.

Analysing Remortgage Choices

You can use a variety of methods to validate reported trends in remortgaging. Choose one that works for you. Research can easily be done in person, by phone or online. If you choose the online method to analyze your choices, make sure the data is from a reputable source. Blogs or social media sites where “any Joe” can offer commentary may simply add confusion rather than clarity.

If the remortgage package you find is a match for your goal, your credit, and your property, then this can be an excellent option for your financial health. Contact your existing lender or a new one to submit your application. You may also be able to get the process started online. Be prepared to supply the documentation needed to confirm that you meet or exceed the established approval guidelines. If everything is in order, you should be well on the way to completing a new remortgage loan.