Remortgaging is 'limited in current market'
Thursday, 6th November 2008

Lenders are unwilling to lend in the current market, making remortgaging and buying property in the UK difficult to do, it has been said.

Price comparison specialist moneysupermarket.com said that the government was asking high street banks to continue lending but the dearth of supply in the mortgage market was making it difficult for people to get good deals, particularly on remortgaging.

It told people planning on remortgaging to get a realistic valuation of their property and "deduct ten per cent from it".

The website added: "If you still have a loan to value (LTV) of 75 per cent or better and you have an excellent payment record lenders will be fighting over you."

It commented that bad payment histories, coupled with an LTV of 75 per cent or over, would make remortgaging nigh-on impossible.

Towards the end of October, moneysupermarket.com noted that in one week alone, 23 per cent of mortgage products were withdrawn from the market, dropping from 4,930 to 3,785.