Increase in remortgage enquiries made by contractors.
Remortgage enquires up.
The number of remortgage enquiries made by contractors has increased since the New Year according to our figures.
Prior to the credit crisis it was standard practice for borrowers to apply for a remortgage when their new introductory deal or discount term ended. This meant home-owners were able to take advantage of lenders cheap deals throughout their mortgage term, just moving on to new deal after new deal.
In today's fluctuating economy borrowers are finding it more advantageous to remain on their mortgage provider's low SVR. Due to borrowers deciding to remain with their present lender remortgaging figures showed a temporary decline.
Higher loan to value (LTV) deals.
Lenders are seeming to show themselves to be more secure in mortgage lending which is revealed by higher LTV deals. Contractors are also showing themselves to be more secure with their work and so of late more contractors are choosing to look for a new lender mortgage deal.
Now is a good time to attempt a remortgage. In the present economic climate, property prices are remaining low and so contractors can choose not to sell and keep their house by letting it out until house prices start to rise. In this instance remortgaging deals are helpful as they provide contractors with increased options when deciding what they should do with their house.
A contractor could switch to an alternative mortgage to let deal allowing them to rent out their property, this would then raise their income which could be used to fund another property purchase.
