Wednesday, Aug 11, 2010
No dear the ATM is closed
Yahoo: Home owners have no equity to remortgage
Home owners have so little equity left in the homes after the credit crisis that they are struggling to remortgage, experts warned.
The latest lending statistics suggested the number of people who remortgaged their homes in June was just 27,000, down 20 per cent on a year earlier.
Ed Stansfield, chief property economist at Capital Economics, said: There is a sense that people have too little equity in their homes to be able to switch their mortgage, and even if they do have enough, there is little incentive to do so.
Posted by mark @ 11:54 AM (1003 views) Add Comment
4 Comments
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1. mr g said...
"Lenders are cherry-picking borrowers who have the largest deposits "
This works both ways. As a saver, I'm cherry picking the banks with the best interest rates (albeit still crap) to lend my money to.
2. mark wadsworth said...
Oh dear. I don't know whether to laugh or laugh.
3. str 2007 said...
This is nonsense, most motgagees have re-set onto their lenders standard variable rate at 1-2% above base.
The over extended mortgagee is 'having it large'.
Of course they're not moving and paying a £1000 admin fee or some such.
4. tenyearstogetmymoneyback said...
The key point in the article is "even if they do have enough (equity), there is little incentive to do so".
Unless you want to MEW what is the point in remortgaging ? If you want to switch to a fixed rate deal
then you will pay more than the SVR so that isn't as attractive.
I reckon until the credit crunch 90% of the people remortgaging did so because they fancied a new kitchen,
new car, expensive holiday, cosmetic surgery or simply to pay off the maxed out credit cards.