Poor Credit Remortgages, Mortgages, Secured Lending Facing Ups & Downs

With the advent of the recession, the mortgage market in the UK as well other markets for secured lending such as remortgages are facing a series of twists and turns. Poor credit remortgages are facing a decline through the previous months, with remortgages in general falling by 2.6 per cent to a number of 24,949 during the month of June.

Similar to remortgages, mortgage approvals fell by 3.7% as well, resulting in an apparently declining trend for approval rates following the rising trend that was apparent earlier in the year. The decrease in approval rates indicates the possibility of decline in property-secured lending. For those looking for poor credit remortgages, the trend may lead to increasing difficulty.

Further trends showed a beginning in the decrease of house prices the previous month, and the decrease in demand may be due to the worries regarding the economic downturn. However, Martin Gahbauer, chief economist for Nationwide has this to say about the trend, “A combination of restrictive credit conditions and uncertainty about the future economic outlook continues to limit the pool of buyers to those with relatively large financial resources.”