Traditional banks are quickly stopping their remortgage loans and consumers are finding it difficult to get a better rate to avoid foreclosure. Analysts are concnered that this trend is going to continue and that soon it may be impossible for most consumers to get a remortgage. Those with bad credit may find it absolutely impossible to get a remortgage over the next two years.Lesley Canavan with ESPC Money Management says: “There’s still deals to be had and independent mortgage advisers with skills and knowledge know where to look. We have always assessed our clients’ tolerance to interest-rate movements so they can avoid a ‘payment shock’. For example, if someone was taking out a mortgage with a rate of 3.49 per cent, we would look how much that rate would have to increase before they would not be able to afford the repayments and need to sell their home.”"It is vital that homeowners whose mortgages are coming to an end in the next few months, start preparing themselves now”, said Neil Munroe, external affairs director at Equifax. “If they leave it too late, there’s a danger that they will revert to the lender’s standard rate, which could increase their repayments significantly.”
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