Borrowers remortgaged less than ever before in 2012 but in the right circumstance it could be just right for property owners in the coming months. The latest British Bankers Association figures show bank approvals for remortgaging and other loans were 23% and 21% lower in 2012 than for 2011.
Remortgage approvals fell from 17,521 in December 2011 to 14,389 in December 2012.
When you include building societies too the figures are just as poor wit the latest Council of Mortgage Lenders data, published last week, showing a 26% drop in remortgage activity in October, compared to the same month in 2011. Those sat on SVRs are sitting pretty and with record low mortgage payments they are not even considering moving changing deals.
Why should I remortgage?
Despite the collapse of remortgaging based on interest rates there are still many reasons why borrowers should see remortgages as a useful tool.
One seems counter-intuitive. After years spent raising a deposit, months spent choosing a property and weeks spent arranging the mortgage the last thing people want to do is go back to their bank. Continue reading %s