Despite the uncertainty in the marketplace there are a lot of re-mortgage opportunities at the moment.
Mortgage Q&A
“Despite the fact I own 25 properties, all with mortgages at 60% loan-to-value (LTV) , I’ve been told I cannot refinance to a new lender. What is that about?”
Strange as it seems this situation is becoming a major problem for professional landlords or individuals with more than five properties in their portfolios. While refinancing is a relatively straightforward process, the criteria have changed and this is the most important factor in obtaining finance.
Having good equity in lots of properties does not automatically mean you can obtain more credit or refinance what you already have. The banks attitude to risk has changed. Lenders have started capping the maximum number of mortgaged properties in your entire portfolio.
There are now caps regarding the total value of mortgages allowed and certain lenders simply will not lend if you have more than five credit commitments. The ability to access and assess all of the
mortgage options (including private banks) has now become essential. MoneySupermarket.com is no help in this situation.
When will interest rates increase?
When you pick up a newspaper what do you see? Uncertainty!
Uncertainty is all around. There is war, natural disaster, political turmoil, volatile stock prices - and where there is uncertainty - paradoxically there is also certainty, because where there is uncertainty there is also risk.
This is interesting as risk cuts both ways - whilst mountains of profit are possible, so is significant loss. The most important question on every homeowners lips right now is ‘
when will interest rates increase?’
The
Monetary Policy Committee decided to keep rates at record levels again but how much longer can this continue? Lenders are already moving their products and shifting rates upwards in anticipation of change. Now is a good time for homeowners to re-mortgage as there are a lot of opportunities at the moment given the uncertainty in the marketplace.
Latest mortgage deals
How much can you can realistically afford to spend on a property? Mortgage
calculator shows your monthly repayment options.
