Over the last few years, house prices have fallen whilst mortgage lending has contracted significantly. The global financial crisis has had serious ramifications for the UK economy and it is only now that confidence in beginning to creep back into the housing market. The improved availability of mortgages and remortgages is set to be a factor in the recovery.

Before 2008 it was common for banks and building societies to offer 100 per cent mortgages. This meant that first time buyers were able to get onto the property ladder without having to put down a deposit. Some lenders, including failed bank Northern Rock, even offered 125 per cent loans where borrowers could take out additional funds to furnish or redecorate their new property.

After the credit crunch in spring 2008, the majority of lenders radically reduced the percentage of loan to value (LTV) that they were willing to lend, and all home loans of more than the property’s value were abolished, it is unlikely we will see such extravagant lending again.

These days, many lenders will only agree a mortgage for up to 80 per cent of the value of a property. This has meant that first time buyers have had to find a large deposit if they want to get onto the housing ladder. With many young buyers not being able to save such substantial deposits, thousands of people have been unable to buy.

In addition to being bleak news for first time house hunters, this extreme change in lending indicates that many existing property owners who do not qualify for remortgage deals are subsequently unable to switch mortgage lenders. If the existing loan on a home is in excess of 80% of the property’s value, then the borrower will find it hard to access a similar percentage arrangement elsewhere.

This means that people looking to remortgage now have to wait for lenders to increase their LTV limits or for the value of their property to rise. With the UK economy continuing to struggle it is unlikely that either of these things will happen in the short term.

For those mortgage loan customers who currently have enough equity in their home, re-mortgaging is much easier, and there are excellent deals on the market. For those who plan to hold on to their existing mortgage provider; there should be a relatively straightforward procedure to access additional funds.

Lenders are increasingly being proactive in retaining customers by offering them new interest rate deals when their existing mortgage rate comes to an end.

If you have recently reached the end of your existing deal, it is certainly worth investigating the market and contrasting the different remortgage rates, although you should remember that legal costs for the legal paperwork will be added if you switch lender. This is extra to any arrangement fee that is incurred to secure the new deal, which is normally about 1,000.

In order to work out which is the best remortgage product for you, it is wise to take professional advice from a mortgage broker. Brokers can research the market on your behalf to compare the best remortgage deals with the products you may have been offered by your current lender. They can also calculate whether a remortgage will save you money.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals

Mortgages, remortgages and secured loans, otherwise homeowner loans, have been struggling to survive over the past few years, with home loan products being suddenly, for example, being introduced to be withdrawn just as quickly.

It cannot come as a surprise that this happened. as property was one of the sectors most adversely affected by the recent global financial chaos.

Property has always been considered a safe investment, with house prices traditionally rising steeply, and doubling in value every seven years on average.

A high percentage of the wealthiest people on the planet have derived their fortunes from investing in the property market.

The credit crunch saw enormous falls in property prices, and just as these prices fell, so too did remortgages, mortgages and secured loans that very much depend on the values of property.

Mortgages are the first of these home loans, and these are the finance product needed to purchase a home whether it is a first property or the buyer has owned a property before.

With house prices falling ,and also due to lack of general confidence, houses were not selling well, and the demand for mortgages fell as a result.

At the end of a mortgage deal, many homeowners seek to remortgage which involves changing mortgage lenders to get a better rate of interest. Sometimes they are used for debt consolidation These consolidation loans save a lot of money.. As low interest rates depend on the worth available in the property, remortgages also fell.

When the property fall was compounded with the stricter underwriting and loan to values, homeowner loans, remortgages and mortgages were further affected.

The third loan of secured loans or homeowner loans also need the equity in property, and there was often no longer any equity as such.

These secured loans just like a remortgage ae all purpose loans than can be used for just about everything.

This is not before time.

Learn more about home loans. Stop by Champion Finance’s site where you can find out all about compare mortgages for you.

Secured loans are an effective means of borrowing money. This type of borrowing uses something of value as security for the loan. This kind of loan can have several advantages and disadvantages.

The Good

A secured loan is much easier to get that one that is unsecured. Lenders like secured loans, because they are making a much less risky business transaction. They make very good consolidation loans If the borrower defaults and stops making the monthly payments, the lender can repossess the collateral, and sell it to pay the loan amount. The same is true of remortgages.

Without secured lending, there is a good chance that you would never own a home. Every day, people take out mortgages to purchase the home of their dreams. Home mortgages make it possible for the housing industry to operate. Without this kind of loan, the entire economy would come to a screeching halt, as there would be no housing industry.

There is nothing like the feel, smell, and comfort, of a new car or truck. However, the cost of new vehicles continues to rise each year, and most people need a secure loan to buy their new car. If you have to pay cash for a car, you may not have much to choose from.

The Bad

There is a downside to secure borrowing. When you put up collateral, you must make your regular payments or you lose it all. Even if it is half paid for, you may lose the entire collateral. When you default on a loan, it is very bad for your credit score. This can make it extremely difficult to borrow money at a future time.

Summary

Secured loans make it possible to make major purchases like houses and new cars. However, if you can no longer make the payments, you will lose that new house or car. Also, your credit score will take a major hit. You may not be able to borrow money for some time.

Before you apply for secured loans, you should take the time to learn the benefits. Use consolidation loans to organize your financial status.

Adding home improvements to your property is an ideal way to boost the worth of your home. However, accessing the funding to pay for these improvements is not quite as easy any more in today’s wintery financial climate. Remortgaging is an ideal means of securing extra money to enable homeowners to add improvements to their home.

Despite the financial crisis there are still plenty of remortgage deals in the market. Banks and building societies are continuing to offer fixed rate, discounted, tracker, buy to let and offset remortgages with hundreds of interest rate deals available. And, many will let you borrow additional money secured against your home in order to fund home improvements.

Banks have begun to rediscover their appetite for remortgage lending and remortgage rates are currently very attractive. However, with so many rates to choose from it is often wise to seek advice from a mortgage broker or other professional. Everyone’s circumstances are different and a broker can help you find the right remortgage deal for you. With the market changing all the time, benefiting from professional advice is recommended.

Equity Release remortgage rates are hugely variable. A standard fixed rate is 7.84% but this includes a lump sum and no inheritance guarantee. A standard flexible option is normally priced att 7.14% but includes inheritance guarantees. For the purposes of this article we have looked at Aviva’s rates, so other lenders might offer differing deals.

Refitting a bathroom or kitchen are two of the most popular ways of increasing a property’s value. Alternatives include converting your loft or garage, building an extension or conservatory or landscaping your garden.

All of the above refurbishments and improvements make your home more attractive to potential buyers and can also help to maximise the value of your property.

Your home might just benefit from some general redecorating. Changes don’t necessarily have to be architectural and they can simply include aesthetic changes such as new furniture, soft furnishings and carpets. Revamping the internal look of the house is a smart and cost effective way to give your home a more modern vibe, and it can be done by decorating rooms in airy but neutral colours and by adding subtle accent colours.

As part of any remortgage deal you will have to have your home valued by a qualified surveyor. You will also have to complete a detailed remortgage application form and you are likely to have to provide documentation including identification and proof of your earnings. There may also be costs involved in the remortgage process, depending on the lender concerned.

You could also consider speaking to an expert about Energy Efficiency and Housing Renovation funding. This money can sometimes be made available to you depending on the type and age of your home and the work you plan to undertake.

With lenders having become stricter about who they lend to since the global financial crisis, remortgaging is not as easy as it used to be. Whilst there are great remortgage deals in the market, examining other options may also be worthwhile. For example, you could consider approaching your existing lender for a ‘further advance’ to undertake your home improvements. Or, you could also consider a ‘secured loan’ (sometimes called a ‘second mortgage’) although the interest rates applied to these loans tend to be higher than traditional mortgages.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals

More mortgage customers will be able to stay with Northern Rock when their deals expire under a change to the bank’s remortgage strategy. The bank will continue to repay their government loans faster than expectations whilst retaining borrowers rather than forcing them to look elsewhere for a remortgage deal.

Remortgage deals were something to be address on the lender’s agenda. It was confirmed that Northern Rock were adopting the changes not only to stay in line with the government plans, but to also to try to reduce their mortgage portfolio.

This indicates that the lender will boost the amount of money it is lending to existing consumers, with the aim of facilitating a more stable economic climate.

One of the most fundamental features of this change of course will involve Northern Rock being less harsh in their approach to present customers who have fixed remortgage rates. It is these customers who would have normally been offered incentives to switch their provider. The move is partially down to the European Union’s planned goal of meeting state aid rules.

The hope is that this new plans will help the recovery of the mortgage markets, and the lender has stated that the repayment of state money was its most important goal for the foreseeable future.

The lender states that this has been a positive strategy, which has enabled it to comfortably stick to agreed goals for paying back government bailout cash ahead of the originally agreed deadlines.

The lender is now viewed in a different light, as it shows increasing concern for the UK economy and for its customers, rather than its own profits. Although the government loan repayments may slow in the future as their mortgage client base reduces, it does mean good news for our financial markets.

Northern Rock commented to the press on their recent moves regarding remortgage contracts, and stated that in a bid to work with the government in increasing the UK markets’ capacity to lend for property purchases; they have been ensuring that the number of mortgages has been decreasing.

Northern Rock is also keen to emphasise that the government backing for the society remains and that it will stick to all previous targets for bailout loan repayments. In the last financial year, remortgaging has decreased to the lowest level in a decade, claims the Council of Mortgage Lenders, with worryingly high consecutive monthly decreases, sometimes as much as 20% being recorded in the market.

Mortgage advisers, who make their money from clients looking to remortgage and move provider will not see this as welcome news as Northern Rock plan to retain their mortgage customers. However until the markets stabilise, and we see the mortgage markets recovering at a more significant rate than current figures suggest, it is unlikely that we will see any new changes implemented.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals

Since the housing bubble burst in 2007, property values have gradually fallen across the UK. And, with many experts predicting that prices are unlikely to recover in the short term, many homeowners are faced with the prospect that the value of their homes are going to remain subdued for the foreseeable future.

Many borrowers have looked at switching their home loans onto the best remortgage deals to save money. And, it is also possible to remortgage your home in order to raise the cash required to undertake improvements designed to increase its value.

The most recent statistics from the Halifax Building Society indicated that house this quarter were 3.7% lower year on year, with the standard home costing 161,000. These statistics are approximately in line with those figures released by Nationwide Building Society. Housing economist for Halifax Martin Ellis commented: “The underlying trend in house prices continue to be one of modest decline.”

The facts seem to suggest declining house prices for several years ahead. This will continue until a point comes where the average affordability of households has strengthened sufficiently to enable them to purchase a house at the average cost of 161,000. Exacerbating the problem is the unfortunate detail that, with the base rate at a very low 0.5%, saving is proving practically impossible for potential buyers.

What You Can do to Maximise the Value of Your Home: Convert the loft – Research from Halifax found that converting your loft is the number one home improvement that you can make. You are more likely to recoup the cost of the work through the value it adds to your home than any other refurbishment or redecoration project.

A New Kitchen – Second only to loft conversions on this list in terms of added value for investment, is adding a new kitchen. By discussing with a mortgage expert the best remortgage deals that are on the market, finances can be accessed in order to cover the cost of installing new kitchen units and appliances.

Redecorating the house – It is possible to increase the selling price of your home by redecorating. Again, you can use a remortgage to finance the work which may include painting, tiling or fitting new carpets. Redecoration is often inexpensive but can add value to your home.

Build and extension or conservatory – Adding an extension or conservatory increases the living space in your home by adding an additional reception room or bedroom. Ensure that you obtain the necessary planning permission before you start an extension project and be prepared for your home to be a building site during the construction.

Improve the garden – If you have your garden professionally landscaped it can make for a much nice outdoor area and make your home more attractive to potential buyers.

Homeowners worried about the costs listed to above, especially relating to the value of their properties, should act now by investigating accessing finance through a remortgage scheme and implementing one or more of the strategies discussed.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals

As prices continue to steadily decline, what options are there for homeowners if they need to make a move urgently but can’t afford a larger or more expensive house? What happens when sellers are struggling to get prospective buyers through the door? The Nationwide Building Society has published figures which show that house prices have decreased by 0.2% in April to complete a 1.3% drop over the past financial year. The Halifax witnessed an alarming 1.4% drop in property prices in April alone, and this followed a sluggish March.

With recent Bank of England figures showing that the number of mortgages approved fell by 60 per cent between February and March, it’s clear the market is difficult. So, if you do need to sell you property, what steps can you take to maximise your chances of finding a buyer?

The first thing to remember is that you need to ensure your property is priced in line with the area. If the buyer can get the property cheaper nearby, the likelihood is that they will opt for the cheaper property. If you feel that the property may have been valued at a higher amount than it’s actually worse, there is no harm in getting a second valuation done to confirm.

Bear in mind that the real and only value of any property is based upon what a buyer is prepared to pay for it, at the height of the boom when properties were increasing in value by 50,000 to 100,000, this was all theoretical money. Now the bubble has burst you must accept what the market is willing to pay, not what you paid for it five or ten years ago. If you have tried competing on price, and the asking price is absolutely as low as you can take it, perhaps it is time to take an alternate strategy.

Remortgage With a View to Letting: Remortgage rates currently are lower than any fixed rate term home loan agreed before 2009, when the base rate of interest set by the Bank of England dropped to its historic low of .5 of a per cent. If you have managed to accumulate equity in your mortgage, this could be a helpful addition to any deposit you have been able to save, assisting you in buying your new home.

You can then let out your existing home and use the rental income to cover your mortgage repayments. You get to move home as planned and you also retain your property as an investment which you can sell in the future when property prices have risen.

If you need a quick sale and are not so bothered about the amount that you receive for the property, there are home buy schemes that you could look into. These are companies who will simply pay a cheap price for your home and pay cash up front.

Because these companies will buy your house quickly, often there is little chance to question the deal you are getting. Without an estate agency they save themselves commission fees, but they limit your ability to get a good price. If a house needs to be sold on in a hurry due to divorce or to divide an inheritance, these are an option.

Property Auctions: A large majority of bidders at auctions for property are seasoned and experienced professional property developers, and their business is concentrated around buying property at rock bottom prices in order redecorate, and turn a profit either by renting or selling. Again, it should be a last resort to sell your property this way because unless your property is unique in some way, or if it is rare or comes with land, the price raised is likely to be low.

With remortgage rates at their lowest for many years, it is a great option at the moment if you’re able to obtain the finance from a lender. Now really is the time to take action if you want to remortgage too, as interest rates are going to rise later in the year, and so remortgage deals will subsequently see higher interest rates too.

James writes for Just Remortgages one of the UK’s top sites for the latest remortgage rates and remortgage deals