At one time it was said that there were well over 1,000 mortgage deals available on any one day. Clearly, it was in a 'horses for courses' type of market to suit the borrowers if they matched up to the lendersí criteria. In fact, it was more the case of what was referred to as the 'mirror test' - if the potential borrower breathed on a mirror and it steamed up then they got the mortgage loan, provided the valuation was alright!
Probably, in all conscience, that was very wrong and, as always, the market has proved that to be so with the resultant collapse of the banking sector, mainly caused by bad mortgage secured lending. With the availability of wholesale monies the banks had moved from their traditional position of not borrowing short and lending long. They entered a potential minefield and this has proved to be the case. Despite their securitisation activities to lay off risk, somewhat like a book maker with horses, they have managed to cause one of the biggest financial collapses the world has ever known.
So, nowadays, to find the best refinance mortgages is very difficult. Lending criteria have been tightened beyond belief. Loan to value ratios have collapsed and credit risk evaluations have been strengthened too. Having said that, the banks cannot make a profit if they donít lend, so we are seeing a slight relaxation occurring in the market to keep business moving. A good site that will help to evaluate refinancing further is http://www.halifax-loans-mortgages.co.uk . (more...)