With 1.4 million borrowers coming off their cheap 2-year fixed rate deals in 2008, they would be in for a shock with higher mortgage costs and tightened lending criteria. Borrowers with poor credit history looking for a new deal would find it even harder; Lenders are now asking for 25% equity as opposed to 15% before the credit crisis hit the financial markets. To ensure you get a good deal, first talk to your existing lender so you have something to compare other offers against. Also be sure to take into account the cost of switching lenders; valuation and solicitor’s fees. The easiest comparisons are with deals from other lenders that would pay these costs for you or just obviously much lower rate without extended tie in.
Tags: 2008 crisis, bad credit history, Credit crunch, remortgage