subject: Mortgage And Remortgage Applications Should Increase As House Prices Continue To Rise. [print this page] Mortgage and remortgage applications have been much lower over the last year or so, more than at almost any period since records began
The price of properties fell over the last two years, and coupled with massive redundancies throughout the UK fewer were buying properties either as first time buyers or home movers
Now that property prices are rising and in fact in November records showed that that was the seventh month in a row that prices had risen, more people now feel that there is hope in the economic future of the country in general and as a result they are feeling confident enough to buy a property.
Everyone needs a nmortgage to buy a house unless he or she happens to be rich.
House prices in November were the best since August last year with the average home in the UK now costing just under 163,000.
House prices actually started to stabilise in April, and there has not been a fall since that month.
Although October and November prices only rose by half of a percent which is in fact the lowest rate since April when falls in house prices ceased.
House prices are now 2.7% higher that at the same time last year, and demand from people seeking a mortgage has risen accordingly..
Mortgage approvals for those wanting to buy a home rose in October to 57,345 making it the eleventh consecutive rise.
The housing market has made substantial steps to revcovery during the course of 2009, and house prices have been helped by a shortage of properties for sale.
The mortgage market has no doubt improved but it is a little too soon to be sure about remortgages.
Remortgages have declined over the course of the last two odd years, but remortgages should also be given a helping hand with the improvement in property prices.
In the past, when a home owner came to the end of his deal with his current mortgage provider he frequently sought a remortgage from a different mortgage lender to obtain a better rate of interest.
However the best remortgage interest rates are reserved for homeowners with a lot of equity on their property and the fall in house prices meant that fewer would be eligible for these low rates.
The current on going rise in property prices will now however lead to more homeowners being in the frame for a low rate when he remortgages.
A large number of homeowners opted for staying at their current mortgage lender's standard variable rate as it was the less expensive choice.
As property prices have gone up many will have bett er equity in their homes, and changing their mortgage provider will now be the better choice to obtain a lower rate for a remortgage.
The Woolwich has a tracker product at 1.99% for homeowners who have a minimum deposit of 40% and the Alliance and Leicester has a tracker at 1.At a maximum LTV an interest rate of 1.99% is available.
The mortgage and remortgage industries will reap the benefits of the increase in the cost of a home.
by: Liz Moir
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