Mixed Fortunes For Loan Customers Over Last Year December 31st, 2009
The past twelve months have been an interesting time for the housing and home owner loan markets, particularly for those individuals who either already have an outstanding loan, or perhaps even more so, for those people who have been looking for a new loan to either purchase a new home or remortgage their existing one.
The effects of the credit crunch and the banking crisis, coupled with the recession have had a dramatic effect on the ability to take out a loan, as well as for banks and building societies to be able to offer loans to customers.
For those people who have had an existing mortgage or home owner loan throughout the year, many have seen their monthly loan repayments drop significantly during the first three months of the year, as the Bank of England reduced interest rates to the lowest level ever seen, in fact the majority of people have remained on their existing lenders standard variable rate loan once their initial deal has finished, rather than attempt to look for a better deal elsewhere, as this has usually become the cheaper option.
Others with a tracker or variable rate loan, have in many cases, seen their monthly repayments drop by hundreds of pounds a month, allowing them to either overpay on their loan, or repay other debts with the savings.
For those looking for a new loan, whether it be for house purchase, or remortgage, it has been a more difficult year, as lenders have become extremely cautious about who they are prepared to offer loans to and as a result of this, many people have now been excluded from being able to borrow money where they may have been able to do so a couple of years ago.
For those who are able to get a loan, the costs have become much higher than they previously were and this has put many potential buyers off making the house move they would have liked to. Only in the past couple of months, have rates started to fall slightly and let’s hope this trend continues into 2010, allowing more borrowers back into the housing market.