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Topic starter
08/08/2013 12:17 pm
Hi everyone,
Interesting watching the news last night about interest rates very likely to remain as the are for the next 3 years. We are, as I'm sure are many in this forum, currently on NRAM SVR 4.78%. My question is, is it as difficult to remortgage current property as it is to obtain new mortgage? I'm thinking that in early new year we well have approx 10-15% equity & should hopefully be discharged from TD as last payment due end of this month?
Would appreciate any thoughts or experiences folk?
Thanks
08/08/2013 1:27 pm
Hi boys1211.
I'm not sure that there's much difference between remortgaging or getting a new mortgage. In both cases the lender is assessing the risk that they perceive exists. They consider factors such as:
1 - A smaller deposit leaves them at risk if property prices fall.
2 - A less affordable mortgage makes default more likely.
3 - A borrower with previous credit problems may be less likely to maintain their repayments.
These factors remain pretty much the same irrespective of whether it's a new mortgage or a remortgage.
I wonder if we'll see some relaxation in terms of mortgage lending over the next couple of years? It's starting to feel like the total paranoia of lenders is gently ebbing away over time.
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