Finding a remortgage deal in the midst of the financial crisis

Article source: JBA Public Relations - www.responsesource.com
Tuesday October 7, 2008

The mortgage market has seen a complete transformation over the period of the financial crisis being witnessed across economies worldwide. Mortgage borrowers are finding that they do not have much choice let alone a say when it comes to mortgage deals since the mortgage lenders have completely taken over the market and are calling all the shots.

There are deals still available according to MortgageMonitor.co.uk, a market analysis service, but customers are limited to the particular requirements set by the mortgage lenders. There new requirements are there in a bid for the lenders to be more risk averse and help them avoid losing given the current instability of the financial markets. To find a suitable mortgage deal, mortgage customers will need strategies that will help them manoeuvre through the market and find the best deals; mortgagemonitor.co.uk claims that is can now offer customers a strategy on how to do this.

The Chairman of the Mortgage Monitor, Les Jacobs says that even with the disappearing of a lot of mortgage deals, more deals are still coming up, approximated at 2000 new mortgage products in the last two months. These new mortgage products are however tailor made to suit the market situation at the height of the financial crisis. Mortgage Monitor confirms to that they have access to about 11,000 deals which are currently available. They proactively search the market to help keep customers informed of deals that will save them money until they a debt free.

Mortgage Monitor confirms that the choice of mortgage products has fallen sharply since the onset of the credit crunch and that mortgage lenders now seem to have a lot more control over the mortgage market. Lenders are becoming increasing wary of whom they are lending to and for that reason it is more important than ever for shoppers to look around. Through Mortgage Monitor’s continual analysis of the market, UK mortgage buyers have access to find the best deals on offer.

Mortgage Monitor has taken an active role to provide a step by step guide on how UK homeowners can take control of their mortgage. By using this advice Mortgage Monitor hopes homeowner will be able to take control of the biggest monthly outgoing. The five steps are summarised as follows.

1. 1. Act Early - act now to find yourself a new deal because holding on to a previous deal with higher lending rates can increase your expense unnecessarily. By acting with haste you may be able to secure a better rate 6 months before your current mortgage product is due to expire.
2. 2. Look beyond the advertised rate – look at the hidden costs, the overall costs for comparison, the arrangement fees, survey fees and any others which may not now, given the current market situation, be covered by your deal.
3. 3. Tie in periods and early repayment penalties – What are they? Can you get a better deal elsewhere?
4. 4. Use a mortgage broker – Use a Financial Services Authority approved mortgage broker, they are impartial and can search the whole market for you to find the best deal. Avoid the banks and building societies as they can not advice, they can just sell, as their mortgage range it limited to what they actually have on offer.
5. 5. Keep searching the market – products can and do go everyday. What seemed like a good deal yesterday may not necessarily be so today.

Mortgagemonitor.co.uk’s membership of home owners has increase by over 90 percent in the past half a year. This shows the impact the credit crunch is having and show the importance for the client of find a deal which saves them the most money.