Although getting a remortgage may actually be helpful to many consumers, the rise in rates and fees for these loans are convincing many to stay with their current loan. However, this may cause problems if rates continue to go up and the availability of remortgage loans remains low. There are few options available right now to consumers and as banks charge higher fees and higher rates, many have nowhere to turn if they are at risk for foreclosure. New programs may be instituted to help these homeowners, but for now, they have very few choices available to them as a result of the housing crisis.
Phil Perry, director of Cheshire-based IFA Ark Financial Planning, said: “I can see the decline in remortgaging happening because people are finding it more cost-effective to stay with their current company. There is more of an argument to stay with your current provider at the moment that to move around. These are uncertain times and more people are looking to fix their payments but it is at least one thing they have control over unlike rising food and fuel prices. At least they are able to budget for their future mortgage payments.”
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