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apom

Remortgaging For The Best Deal

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HOMEOWNERS are remortgaging in record numbers to snap up the best interest rates. The amount loaned in remortgages reached £11.7bn last month, the same amount which used to be handed out in a whole year only a decade ago.

So what does this reflect?

It has been speculated before that the huge cost of housing over the last few years only actually impacts people who have bought a property durring the boom and those realising the "new equity" that their home holds.

But in a month, remortgages outstripped all mortages from a decade ago.. for a year..

Now a decade ago house prices were recovering, but it still wasn't a strong market..

So these people remortgaging and the staggering amount of money involved..

Does this represent those who are fantastically overstretched? Those who see that as prices drop a re-mortgage in the future will be impossible.

If you are in negative equity you can not change your mortgage.

The amount you owe has to reflect the current value of your home for a loan (mortgage) to be realised against it.

So although current long term deals are for higher then current flexible interest rates people are seeing that it is better to know where they will stand..

Is the countries uncertain economic future and the housing market decline becoming the publics perception?

'Around 200,000 fixed-rate deals came to an end this summer. Borrowers who had enjoyed the security of some excellent deals when the base rate was just 3.5% in the summer of 2003 faced the prospect of paying much more for their mortgage if they did not remortgage.'

Now the average remortage is £93,000

that is

£3,255 of interest a year. at the old 3.5 fixed rate.

Now at 4.9 the interest a year has gone up to

£4,557

Or 200,000 people just saw their mortgage interest payment rise by £1,302 a year

or £108.50 a month.

on average..

ouch.

£260,400,000

extra yearly interest payments now being paid just on last months remortaging.

Debt has not increased at all.

This is interest rates effecting the people who remortgaged last month.

Edited by apom

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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