- 31
- Jan
Mortgages and remortgages saw a huge decline in applications during the credit crunch.
A mortgage is of course the home loan required to either buy a first property to become a homeowner for the first time and a mortgage is also needed when an existing homeowner wants to move house.
Only people who are well heeled and have enough cash in hand can avoid the need for a mortgage.
Since the start of the credit crunch the requests for homeowners for a mortgage to move property went down, as homeowners, unlike in normal circumstances, choose not to move property as they in general would.
Those who already own their home and would normally move to a larger property on a fairly regular basis were afraid that their employment was not secure.
First time buyers were not applying for a different reason than existing homeowners and the reason for this was that even people really keen to buy their first home simply could not afford the minimum deposit of 25%, as this was the minimum unlike before the credit crunch when 100% mortgages were available.
Mortgage equity margins are already slackening of a little as are remortgages which like mortgages diminished over the last three years.
This should have a beneficial influence on property prices as with mortgages available to more would be buyers, house prices are bound to rise.
People who are already homeowners should feel a renewal of job security that will lead them to apply for a mortgage to move house.
Now that the recession is over at last there will be a renewal of confidence and people will once again apply for remortgages and mortgages and so they should as interest rates are so low.
The new confidence instilled by the UK coming out of recession will mean that those wanting a mortgage to buy a property and those wanting a remortgage tp obtain a lower rate of interest can now avail themselves of the excellent low remortgages and mortgages on offer.
