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Re- Mortgages on the Rise

Studies are showing that re- mortgages are on the rise. In fact many individuals in the UK have decided to re- mortgage there homes than to buy a larger property. The re-mortgage industry has risen to 35 percent of mortgages since April. Before April studies were showing about 24 percent of borrowers were re- mortgage customers.

It seems that many individuals would rather wait out the credit crunch of the last year before purchasing a new property. Some of the borrowers need to re- mortgage in hopes of getting a better loan. It seems that re-mortgaging is increasing largely due to the credit crunch over other reasons, though. Most consumers are coming to the end of their fixed rate deals, which has also accounted for the re- mortgage options over purchasing a new property. Those with mortgages are looking for a better opportunity from a lending company. In most cases the borrowers are looking for secure competitive deals. This means the borrowers are looking at more than just one company to find a new mortgage that benefits them over the benefits for the mortgage company. Since there are many mortgage companies trying to stay on top of the credit crunch they are offering better re-mortgage deals to those who have good credit and of course have a mortgage.

The report also shows an increase in the market for first time home buyers. The first time homebuyers have been working hard to save money to purchase a property as well as keep their credit history in line. The first time home buyers are seeing great deals with the falling real estate prices and this encourages them to find a suitable property to purchase and obtain a mortgage. 40 percent of the buyers in October, alone were first time homebuyers. While the numbers fluctuate a little bit the first time home buyers are still up about six percent every month. Another aspect of the mortgages for the first time homebuyers are the held interest rates.

First time homebuyers are also trying to purchase property before the housing prices increase again. Right now the market is showing a stabilization in the housing prices, which offers a confidence to first time home buyers. They are trying to borrower the mortgage amount for a home before the housing prices increase again. The market is in favour of the housing prices increasing again if the mortgage companies can stop the credit crunch on sub prime loans.

The figures are also encouraging to the first time homebuyer. It seems that the figures for housing prices are essential to a healthy mortgage industry. This means that when the housing prices are low, and there is a buyers market the mortgage companies are going to get more business, which means a healthy mortgage industry. Despite the credit crunch there are still borrowers out there looking for good deals that will have a fixed rate mortgage over the variable rate. Some of these same borrowers are going to be first time homebuyers, which is helping to strength the housing market.

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