Friday 10th of July 2009
Homeowners who are in need of a cash boost via remortgaging may instead find that an individual voluntary arrangement (IVA) becomes a better option.
Last summer, Britons had over 29,000 mortgage products on offer - but this has now declined to 2,282.
Furthermore, lenders are not granting as many applications because they are concerned about taking risks on people who may not be able to meet their monthly repayments. As such, individuals in a less secure financial position may find they cannot obtain a remortgage.
"Unfortunately, it is doubtful that the number of products will increase significantly any time soon," Louise Cuming, head of mortgages at moneysupermarket.com, said.
Rather than dig themselves further into debt, homeowners may instead find that IVA advice proves to be of assistance.
By making other financial commitments, such as high-interest rate store cards, more manageable, Britons may find they can stay on top of their current mortgage expenditure without the need to extend to a remortgage.
Nearly one in six prime UK mortgages are now in negative equity, ratings agency Fitch previously found.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- NIESR: unemployment figures may be overcooked
