Mortgage, Remortgage And Secured Loan Rates May Rise, So Apply Now
The home loans industry has been in a state of flux F50-528 peppered by highs and lows since the start of the recession which triggered tremendous changes in the industry.
Before the credit crunch, lenders were prepared to lend to many people, and in fact were not only prepared to lend freely, but were in fact desperate to release funds in a very laid back manner.
By this we are referring to all sorts of loans both business and private such as mortgages, remortgages, secured loans, buy to let mortgages, etc. etc
Mortgages, which are the loans needed to buy a property, were available up to 100% of the value which meant that people without a penny in their bank account could become the proud owner of their very own home.
Some lenders, with the Northern Rock the most famous, were even prepared to grant mortgages up to 125% of the F50-515 value which was extremely fool hardy, and we all remember with shock what happened to that particular building society
Not only were equity margins very lax but so too were the income multipliers with as much as seven times an applicant’s earnings being considered including overtime. bonus, etc.
This meant that someone with an income of £30,000 could borrow over £200,000 on a property that was valued at £150,000.
On the above example it is no wonder that many fell into arrears with their mortgage payments as they could not afford the monthly payment and no wonder that many lenders would be left with properties that they would not receive their money for, as these homes were not worth the money that they had foolishly granted,
Half the applicants for mortgages, remortgages and secured loans did not even need to prove their earnings as self declarations of income for all these products were available.
Remortgages worked in identical ways as mortgages, and that is to be expected as a remortgage is only a new mortgage taken out with a different lender provider, either for the same amount or to raise additional money that can be used for almost any reason, including debt consolidation which saves a huge sum of money each money when it is used to pay off expensive credit cards, personal loans, etc.
Everything tightened over the recession, but a great aspect during this period was that interest rates for mortgages and remortgages became very low because of the lowest ever Bank of England Base lending Rate which lead to rates as low as 1.mortgages and remortgages are in the market at less than 2%.
These rates have stayed the same until now.
However,there are rumours that these rates may not be with us for very much longer and as such this makes right now an ideal time for anyone considering either a mortgage or a remortgage to enquire about a quotation now while they are still low and apply for a fixed rate mortgage deal which keeps the repayments the same for a set number of years.
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