House price drop may block best remortgage deals
The Financial Services Authority (FSA) has warned that due to falling house prices, many homeowners looking to remortgage next year may not be able to access good deals.
This is because many lenders restrict their best deals for customers who have paid deposits of over 25%.
Almost half of homeowners taking out a mortgage or remortgage since 2007 have borrowed more than 75% of the value of their property, meaning that, if they wish to remortgage next year, they may not be able to find a good deal.
November 4th, 2008 at 10:08 pm
Thus leaving them only the higher-cost subprime mortgages which they are less likely to be able to repay… which is what got us into this mess in the first place! Not what the government would call ‘joined up thinking’.