Mortgage And Remortgage Rates Rise. Will Secured Loans Follow?
The interest rates for mortgages and remortgages have recently been at an almost all time low,
The low rates can in part be attributed to the fact that The Bank Of England Base Lending Rate was reduced to also an all time historic rate of half of one percent, which had a knock on affect on mortgage and remortgage rates.
Tracker products do exactly as they say, and that is they follow or track the base lending rate, and when this rate is low, so are mortgage products.
There are also variable mortgages, that as their name also suggests, can vary depending, not only on the base rate, but to some extent on the whim of the lender.
Mortgage rates can be increased to suit the provider.
Therefore both tracker and variable repayments can alter, and rise at any time, but over the past few years, interest rates remained low and very stable.
Unless someone has sufficient own funds available, everyone needs a mortgage to buy a house, and normally, when interest rates are low, many people do buy a property.
However, many would be property buyers were put off by the fall in house prices during the recession, and preferred to stay put as it were.
There was a big decline in mortgage and remortgage approvals and applications.
At the end of a mortgage tie in period, during which there would be an early repayment penalty of up to 5% of the outstanding balance, many homeowners used to arrange a remortgage, which is a mortgage with a different lender.
This was done to obtain a lower interest rate or even to obtain additional funds, that have a multitude of uses, from car purchase to paying for the sort of wedding that you have dreamed about, and even for debt consolidation.
Debt consolidation can save a fortune every month when a remortgage is used as debt consolidation loans that pay off high interest debts in credit cards, etc.one low repayment is all that remains.
Secured loans have the same uses as remortgages, and are loans that are secured on the equity of property.
These secured loans declined for the same reasons as their cousin, the remortgage, as apart from homeowners no longer having sufficient equity, secured loans underwriting became very strict, ruling out many from being eligible.
Many people, who were eligible for remortgages and secured loans in the last two or three years, when rates were low, may now be sorry that they did not apply at that point as rates look like thay are going up, with the Abbey already announcing an increase in interest rates.
It is to be wondered if secured loans will follow in their wake.
The low rates can in part be attributed to the fact that The Bank Of England Base Lending Rate was reduced to also an all time historic rate of half of one percent, which had a knock on affect on mortgage and remortgage rates.
Tracker products do exactly as they say, and that is they follow or track the base lending rate, and when this rate is low, so are mortgage products.
There are also variable mortgages, that as their name also suggests, can vary depending, not only on the base rate, but to some extent on the whim of the lender.
Mortgage rates can be increased to suit the provider.
Therefore both tracker and variable repayments can alter, and rise at any time, but over the past few years, interest rates remained low and very stable.
Unless someone has sufficient own funds available, everyone needs a mortgage to buy a house, and normally, when interest rates are low, many people do buy a property.
However, many would be property buyers were put off by the fall in house prices during the recession, and preferred to stay put as it were.
There was a big decline in mortgage and remortgage approvals and applications.
At the end of a mortgage tie in period, during which there would be an early repayment penalty of up to 5% of the outstanding balance, many homeowners used to arrange a remortgage, which is a mortgage with a different lender.
This was done to obtain a lower interest rate or even to obtain additional funds, that have a multitude of uses, from car purchase to paying for the sort of wedding that you have dreamed about, and even for debt consolidation.
Debt consolidation can save a fortune every month when a remortgage is used as debt consolidation loans that pay off high interest debts in credit cards, etc.one low repayment is all that remains.
Secured loans have the same uses as remortgages, and are loans that are secured on the equity of property.
These secured loans declined for the same reasons as their cousin, the remortgage, as apart from homeowners no longer having sufficient equity, secured loans underwriting became very strict, ruling out many from being eligible.
Many people, who were eligible for remortgages and secured loans in the last two or three years, when rates were low, may now be sorry that they did not apply at that point as rates look like thay are going up, with the Abbey already announcing an increase in interest rates.
It is to be wondered if secured loans will follow in their wake.
