More brokers placing secured loans over remortgage deals
Share
Portal Portfolio has seen a rise of over 100% in brokers seeking secured loans for their clients as opposed to remortgage deals, the firm claims.
It says remortgaging is unattractive to many borrowers, as they would not be able to secure new mortgages at anything like the rates they are currently on.
Portal Portfolio states most borrowers would face a rate rise of 2-3% if they were to remortgage, while some are looking at much more than that.
Tim Moore, managing director at Portal Portfolio, says: “Many homeowners are locked into some very attractive deals, and the costs of breaking these deals and re-mortgaging, if all you are looking to do is raise a few thousand pounds, just doesn’t make sense.
“My market knowledge also suggests that brokers are finding it easier to place secured loans as most of the current customers are prime, looking for reasonable borrowing and for legitimate reasons.”
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
