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Who Can I Remortgage With Now?

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What happens in a credit tightening scenario to those who secured their mortgage a couple of years back when credit was easy to come by and did not have to give any earnings data (self certification) allowing them to borrow very high multiples, now the discounted or fixed rate is coming to an end and it’s time to remortgage.

Would it be possible that I would no longer qualify for new products due to tougher lending criteria that I would be forced to stick to my existing product with its standard rate thus increasing monthly mortgage payments substantially?

To save unwarranted contempt or sympathy I’ve used ‘I’ for illustrative purposes only (but it very nearly could have been me had I gone for the 350,000 family house I had my eye on in 2004, now worth over 400,000)

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What happens in a credit tightening scenario to those who secured their mortgage a couple of years back when credit was easy to come by and did not have to give any earnings data (self certification) allowing them to borrow very high multiples, now the discounted or fixed rate is coming to an end and it’s time to remortgage.

Would it be possible that I would no longer qualify for new products due to tougher lending criteria that I would be forced to stick to my existing product with its standard rate thus increasing monthly mortgage payments substantially?

To save unwarranted contempt or sympathy I’ve used ‘I’ for illustrative purposes only (but it very nearly could have been me had I gone for the 350,000 family house I had my eye on in 2004, now worth over 400,000)

...I like old adages...this one is ...when the tide goes out you will find out who was swimming without their pants on..... :lol::lol::lol::P

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The trouble is that more and more, banks have moved away from using customer deposits (savings) to fund their lending. Instead, they’ve been raising money in the wholesale markets. But now that costs there have jumped and rates have become far more volatile, the banks are keen to start attracting more savers so they can build up their reserves that way.

Of course, you only make money if you earn more interest from the money you lend out, than you have to pay to attract it in the first place. Hence Gabay’s point about higher home loan costs.

It’s the last thing that over-stretched British borrowers need. Nationwide building society already reckons that around 250,000 borrowers will see their mortgage costs jump by a staggering £200 a month from October.

That’s a lot of extra money for even comfortably-off people to find. Yet the reality is that most mortgagees are not particularly comfortably off at the moment. They’ve had to stretch as far as they can to get on the housing ladder in the first place, so it seems very unlikely that there’s a lot of give in the system.

Quote from Moneyweek

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Check out MSE, lots of remortgage info on there, go have a look :).

Had I not been overpaying my mortgage, and rates are static for a while yet, I reckon id be up for £200 more a month when my fix runs out. As it is I will be back to the amount I started with. Which is a bit depressing in a way, but I guess I can be happy I have my pants on - not that I have anything to be ashamed of ;)!

I still think rates will go up, but im of the prepare for the worst school of thought...

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...I like old adages...this one is ...when the tide goes out you will find out who was swimming without their pants on..... :lol::lol::lol::P

That's one of Warren Buffet's classic lines

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What happens in a credit tightening scenario to those who secured their mortgage a couple of years back when credit was easy to come by and did not have to give any earnings data (self certification) allowing them to borrow very high multiples, now the discounted or fixed rate is coming to an end and it’s time to remortgage.

Would it be possible that I would no longer qualify for new products due to tougher lending criteria that I would be forced to stick to my existing product with its standard rate thus increasing monthly mortgage payments substantially?

To save unwarranted contempt or sympathy I’ve used ‘I’ for illustrative purposes only (but it very nearly could have been me had I gone for the 350,000 family house I had my eye on in 2004, now worth over 400,000)

Why don't we all get our mortgages down at the Bank of England from now on?

I hear they're lending.

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Why don't we all get our mortgages down at the Bank of England from now on?

I hear they're lending.

Its strange how the banks can still afford teaser rates. Halifax 6.89%

for two years, followed by SVR currently 7.75%

Who knows what the SVR will be two years hence.

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What happens in a credit tightening scenario to those who secured their mortgage a couple of years back when credit was easy to come by and did not have to give any earnings data (self certification) allowing them to borrow very high multiples, now the discounted or fixed rate is coming to an end and it’s time to remortgage.

Would it be possible that I would no longer qualify for new products due to tougher lending criteria that I would be forced to stick to my existing product with its standard rate thus increasing monthly mortgage payments substantially?

To save unwarranted contempt or sympathy I’ve used ‘I’ for illustrative purposes only (but it very nearly could have been me had I gone for the 350,000 family house I had my eye on in 2004, now worth over 400,000)

Indeed, I believe the correct economic term for those circumstances is known as; to be 'snookered'.

Right now they're still blaming poor Cletis over the water but pretty soon your alter ego will be up the same river without the same paddle.

Edited by dstars

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"You" might want to talk to your existing lender.

Some BS's and banks have a policy that allows "you" to move to another deal straight away providing you are not in arrears (Britannia for one).

People with less accomodating lenders may be in a bit of trouble on a LIBOR + x% based SVR if no-one in the market will take them. Pity the poor sub prime heavy adverse borrower who thought he would be able to re-mortgage to a good deal (probably with some mew for new tats and piercings) and now is stuck on a jump from 7 to 11% with no BoE increase.

Re-possessions of shite houses in shite areas across the land are about to go to the moon, I reckon.

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People with less accomodating lenders may be in a bit of trouble on a LIBOR + x% based SVR if no-one in the market will take them. Pity the poor sub prime heavy adverse borrower who thought he would be able to re-mortgage to a good deal (probably with some mew for new tats and piercings) and now is stuck on a jump from 7 to 11% with no BoE increase.

Re-possessions of shite houses in shite areas across the land are about to go to the moon, I reckon.

You may be right here, but I also think there will be a GOOD number of lovely houses that will be affected too. I know a number of self employed guys who have used self-cert to buy lovely homes. These too will be affected, but instead of the funds being used for tat's, the funds have been used for Tabatha's 'Rangey' and keeping up with the Jones'.

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It’s the last thing that over-stretched British borrowers need. Nationwide building society already reckons that around 250,000 borrowers will see their mortgage costs jump by a staggering £200 a month from October.

That’s a lot of extra money for even comfortably-off people to find.

A lot of people could save that easily, by investing in and using a cook book. Even packing a lunch instead of buying drinks and sandwiches will go a long way to plugging the gap. Of course, 'comfortably-off people' are entitled to their 3-quid cups of coffee. Caster and Pollux to them, I say.

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Of course, you only make money if you earn more interest from the money you lend out, than you have to pay to attract it in the first place.

But not true when you can 'create' it as a book keeping exercise. ie a bank

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A lot of people could save that easily, by investing in and using a cook book. Even packing a lunch instead of buying drinks and sandwiches will go a long way to plugging the gap. Of course, 'comfortably-off people' are entitled to their 3-quid cups of coffee. Caster and Pollux to them, I say.

Them buying 3 quid cups of coffee will just let them default earlier.

Hopefully they will stop and the whole expensive coffee thing will tumble, lots of lost jobs, and make the whole thing worse.

I am sure they don't have to sell many 3quid cups to keep going though.

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You may be right here, but I also think there will be a GOOD number of lovely houses that will be affected too. I know a number of self employed guys who have used self-cert to buy lovely homes. These too will be affected, but instead of the funds being used for tat's, the funds have been used for Tabatha's 'Rangey' and keeping up with the Jones'.

Agreed completely. Of those I know who're well and truely up to the eyeballs at the moment, the vast majority are in what could best be described as "decent" houses in "decent" locations. I see little evidence to suggest that the (increasingly likely) coming affordability issues are going to be limited to burger-flippers who've purchased in areas with all the charm and appeal of Pripyat.

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250,000 borrowers will see their mortgage costs jump by a staggering £200 a month from October.

Quote from Moneyweek

And thats £200 thats not finding its way onto the high street propping up consumer spending too. :huh:

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"You" might want to talk to your existing lender.

Some BS's and banks have a policy that allows "you" to move to another deal straight away providing you are not in arrears (Britannia for one).

People with less accomodating lenders may be in a bit of trouble on a LIBOR + x% based SVR if no-one in the market will take them. Pity the poor sub prime heavy adverse borrower who thought he would be able to re-mortgage to a good deal (probably with some mew for new tats and piercings) and now is stuck on a jump from 7 to 11% with no BoE increase.

Re-possessions of shite houses in shite areas across the land are about to go to the moon, I reckon.

So some cash-strapped lenders will effectively have the customer by the short & curlies. Are these customers likely to get a 'competitive' deal on their remortgage?

I can almost hear the broker saying 'sorry, you don't qualify for that deal, you will have to take the one with the higher payments'

Ouch :(

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