Remortgages Thoughts At The End Of The Year.

It is now near the end of 2009 and as such it is worth considering what will happen to remortgages next year.

Remortgages have been at an all time low for those with a good equity margin in their property.

As such, for those with a suitable amount of equity 2009 has made it a better time to enquire about remortgages than at any previous period.

Homeowners want an element of certainty in their lives at a time when the country is in a state if economic turbulance, and this has lead to many remaining with their existing mortgage provider.

This means that many a mortgage payer is actually paying through the nose by remaining with their current lender at their standard variable rate, but it is understandable that in times of uncertainty homeowners feel safer remaining with the devil they know.

Staying with the existing lender is an expensive decision as rates are available from 1.98% on a tracker remortgage at 60% loan to value or LTV as it is commonly called.

This means that if a property is worth 260,000 must hav 40% taken away from this sum which would be80,000 and as such if someone owns their property and need a remortgage of £120,000 or less he is eligible for this low 1.98% remortgage rate.

This is of course subject to additional underwriting criteria such as equity, status, etc.

For those with a maximum LTV of 70% interest rates of 1.99% are available.

With this sum of available equity if a property is valued at £250,000 a remortgage of up to 175,000 would be available.

Homeowners who are about to come out of their existing mortgage product should seek remortgage quotations from other lenders.

The economy should see signs of improvement next year and this should instill confidence in the UK public to change their mortgage provider.

Another consideration is to whether a tracker remortgage or a fixed rate remortgage is preferable.

The start of the recesion did lead to many homeowners choosing a fixed rate remortgage over a tracker rate product.

This was due to the fact that in a period when the economy was so uncertain it was at least comforting to know exactly how much the remortgage would cost for the fixed repayment period.

A fixed rate is, as it says set, at the exact same repayment for the fixed period ehich is normally two or three years, although fixed rates from twelve to sixty months are available.

As the recession progessed and experts predicted that the Bank of England Base Rate would remain at 0.05% making the tracker remortgage so cheap, homeowners drifted away from the fixed rates and opted for the tracker products which are considerably less expensive.

This current year has been a series of ups and downs for remortgages which in August were at their lowest rates since records started being kept in 2002.

Hopefully the start of 2010 will see homeowners applying for the low interest rate remortgages for which they are eligible.

by: Liz Moir

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