An overall lack of consumer confidence in banks is leading many to seek a mortgage refinance. However, there are few banks willing to offer a mortgage refinance, particularly if the original loan was subprime. Homeowners however are desperate to save money on rising interest rates and the only way to do that is through a mortgage refinance.
Ray Boulger of John Charcol added, “It is a vote of confidence in the property and mortgage market. With bank rate likely to be falling again by early next year and additional mortgage funding coming into the market from private equity investment, there are good grounds for thinking house prices will bottom out in the first half of next year.”
Miles Shipside with Rightmove stated, “Despite some deals being done at prices that begin to address affordability concerns, the number of transactions this year is in danger of being the lowest since 1959. This raises serious questions as to whether any short-term incentives by individual UK entities, such as the Government or the Bank of England, would be effective in speeding up the market recovery against the backdrop of the global problems of the credit crunch.”
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