Declining House Prices Causing Woes for Homeowners Looking to Remortgage

Declining House Prices Causing Woes for Homeowners Looking to Remortgage

Homeowners that are looking for a remortgage in the near future have their eyes fixed on forecasts about the next interest rate rise as well as the declining house prices. They want to make sure they secure a low interest rate remortgage deal before the interest rate is hiked upward by the Bank of England. They also want to secure that remortgage deal before they lose more equity and thus lose the opportunity for the best rate.

In the June meeting the Bank’s rate regulators left the interest rate unchanged for the 27th month at 0.5 per cent. Borrowing is at a historic low but many homeowners are finding it hard to remortgage. This is due to the falling equity levels, with some homeowners that purchased only a few years back finding their mortgages in negative equity.