Remortgaging problems 'arising due to falling house prices'

Date:Tuesday 19th May 2009
Author: Susanna Kavka

Homeowners are increasingly experiencing problems in terms of securing attractive rates when it comes to remortgaging as a result of falls in property prices, it has been suggested.

According to Cath Hearnden, a director at MyMortgageDirect, the falls in the values of homes since the onset of the economic problems mean that some people are unable to qualify for the best deals.

She commented: "Most of the good rates stop at 75 per cent but the property valuations on some people's properties are coming in too low."

The expert went on to advise consumers to consider taking out fixed-rate home loans while the market for such products remains attractive.

She added that the reluctance of some homeowners to secure such deals because they feel they can benefit from the low variable rates currently available is "misguided".

Recently, Stephen Noakes, commercial director of mortgages at Lloyds, claimed that mortgage rates are currently as low as they will get, meaning that the cost of products is likely to rise, the Daily Mail reported.