An Explanation For The Decline In Mortgages And Remortgages And Why They Are Rising Again.

Nov. 25, 2009 - PRLog -- Mortgages and remortgages have decreased dramatically over the last two odd years and are well down on the level at the end of 2006 to the beginning of 2007 when the credit crunch started to be felt.

Mortgages and remortgages are both home loans and are therefore allied to property and affected by what goes on in the property and construction industries.

With the advent of the credit crunch many people saw their incomes fall due to for example having their paid overtime hours at work decreased or complety done away with.Other workers have suffered more serious declines in their earnings by working only three or four days a week in place of the usual five. Others, even less fortunate, have been made redundant.

Even those who have not really been affected by the recession such as teachers, police officers, doctors ,etc. have even felt the atmosphere of doom and gloom permeating through society and to some extent have become affected if only mentally

Therefore a vast section of the public  had no confidence to take on such a major commitment as a mortgage or a remortgage which are the biggest financial undertakings anyone can take on.

Mortgages are of course the loan required to buy a house either  as a first time buyer to get  on the property ladder .or as a home mover requiring a mortgage to buy a second property, third one and so on. With the instabilty of the economy many simple felt that it was not the time to buy a house.

In addition to lack of confidence, the tightening up of lending criteria by the mortgage lenders made it difficult or even impossible for many to be eligible for mortgages with such things as the maximum available mortgage for a first time mortgage borrower becoming 75%.. This meant that for a reasonabty priced property of only £100,000 a deposit of at least £25,000 would be required and that is a lot of money to put one's hands on.

Remortgages were similarly affected and applications for remortgages fell for the same reason as did mortgages. Remortgages are only available to homeowners . Remortgages pay off the existing mortgage on a property ,and move the mortgage to a new lender sometimes to do nothing except to obtain a better rate of interest.. Remortgages done in this way are called a like for like remortgage. On other occassions remortgages are for a higher amount than the current mortgage and the additional funds can be used for almost any purpose such as home improvements, weddings, second home purchase or even for debt consolidation.

Now that the recession has been with us so long and it is now nearing the end of 2009 many people are not prepared to put their lives on hold any longer and remortgages and mortgages are seeing something of a resurrection.

http://www.championfinance.com

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Champion Finance has been in business since 1985 and are experts in the field of homeowner finance. They arrange secured loans, and whole of the market mortgages and remortgages.