Recent bad news concerning the economy, including the American debt crisis, has appeared to have put people off remortgaging, with Bank of England figures released this week showing that Julys remortgage approvals were down by 530 on the six month average from the previous six months.
There were just 30,180 remortgage approvals in July, down from the six month average of 31,340, in a sign that many homeowners were put off by the negative media coverage of the current state of the economy.
The problems started when one of the world’s leading debt agencies downgraded the status of America from their previous elite status, on the back of the huge levels of debt in the country. The news completely wiped out any growing confidence in the markets, and stock markets around the world completely crumbled.
As a result analysts quickly rewrote their economic growth predictions and the picture painted in the media was one of negativity.
Whilst pension funds lost billions in value as a result of the stock market crash, choosing not to remortgage will make little difference to the economy, and now is as good a time as any to remortgage because of the fantastic offers available.
Low remortgage rates actually make it £100 a month cheaper to own a £125,000 house than to rent it, and this shows you the offers available on the market, especially given that those remortgaging a home can often take advantage of lower interest rates than a first time buyer could.
Lenders have begun a price war to attract your business and now is a great time to take advantage of that, through either fixed rate remortgages, or through tracker rate remortgages. Even those who are self employed and unable to take advantage of the previous self certification remortgages will find that lenders have relaxed their lending criteria compared with at the height of the credit crunch, and those bringing as much proof as they can of income will be pleasantly surprised at which remortgages they can take advantage of.