Remortgage market "starting to revive"

Date:Monday 15th September 2008

The remortgage market is reviving as mortgage lenders begin to ease their criteria, it has been claimed.

Mortgage products are increasing in range although applications are still taking a long time to process, according to

The website quoted Tony Harris of independent financial advisers firm ContractorFinancials.

He said that lenders had cut new business requirements six months ago but are now carefully releasing new products, though the range is still "nothing like a year ago".

Mr Harris told the website that there are fewer freebies available such as valuations and legal fees.

He also warned against moving to a lender's standard variable rate as a fixed or tracker deal ends, noting that monthly payments "can increase substantially".

Remortgagers should allow two or three months before the end of a deal to find a new one.

Earlier this month, Mortgage Introducer reported the belief of Elaine Steed that mortgage brokers networks face "collapse" due to an overburdening of paperwork.

She said that the increased regulation would cause brokers to leave the sector or retire.