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As consumers struggle to keep current on their payments, many are taking the sound advice of seeking a mortgage refinance. However, they soon find out that the resulting fees and high interest rates make the process of getting a mortgage refinance very expensive. In some cases, these homeowners are finding that they are saving little money and not getting a deal that is better than their first mortgage. This trend has made it very difficult for some homeowners to avoid a foreclosure, since a mortgage refinance may be the last hope that they have.

“Monthly house purchase lending volumes continue to be lower than last year’s levels and there will be a further weakening in coming months as recent approvals data has shown,” said Michael Coogan, the director of the CML. “The squeeze on mortgage funding has led many lenders to tighten their lending criteria. While tighter criteria make it more difficult for some borrowers to obtain a mortgage, they also reduce risk in a slower housing market.”

“Anyone looking to remortgage or to buy a property for the first time will need to recalculate their options if they haven’t factored in fees,” said director Sean Gardner.

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