National Homebuyers: 'Struggling homeowners seek new mortgages'

A significant number of homeowners in the UK have switched mortgage providers in a bid to find a more affordable deal amid high interest rates and the credit crunch.

[ClickPress, Mon Feb 18 2008] Research carried out by MoneyExpert found that 1.4 million borrowers have changed mortgage provider over the last six months.

Since June of last year, three per cent of the country's adult population have switched lender - some 11 per cent of homeowners.

While people coming off low fixed-rates and those looking for a new fixed-rate deal for security from interest rate rises are likely to be driving this remortgaging demand, switching can be costly.

"Application fees are rising and most are now uncapped, meaning you're likely to pay a proportion of the total amount you borrow," said Sean Gardner from the price comparison site. "That means switching mortgage could cost you thousands of pounds."

According to the report, the number of lenders with uncapped upfront fees has increased nearly fivefold over the last year.

Fast property sale expert Julian King adds, "It's interesting to see that it's homeowners, rather than entrants to the market that are holding up the mortgage industry.

"Homeowners looking to sell their property are facing a lack of buyers, making the achievement of the asking price close to impossible.

"The few buyers in the market right now are calling the shots and will continue to do so for the coming few months".

Mr King is a director of National Homebuyers, the UK's leading quick property sale firm that guarantees to make an offer on any property in the UK, regardless of its condition or location. The company also offers the Sell and Rent back solution for homeowners to release equity, but remain living in their home.