Banks and lending institutions report that the figure of clients seeking re-mortgaging for their property is at a record high. This is attributed to the fact that clients today more than ever before have had the opportunity to take advantage of two very critical trends in the market economy. First and foremost are low rates of interest which are as a result of increased competition among lending institutions. This has led to the availability of better terms and deals in the market. The second reason why the figures are at a record high is because the financial situation of borrowers have significantly improved because of the fact that after taking the first mortgage and servicing it well they are entitled to better terms.
For the past several years, rates of interest in the economy have been at a historical low level. Even with the current increase in interest rates, the rates are still far much lower compared to decades ago when most mortgages were first taken. What this means is that there are considerable savings to be made by fixed rate mortgage holders who can be able to offset their old mortgages and replace with new ones thus taking advantage of the current low rates. Even for individuals with adjustable mortgage rates, there are significant savings to be made since the formula for calculating the payable rate of interest has become quite generous and attractive in the recent past.
This is particularly true if you observe the increased competition in the mortgage industry today. Major Banks and lending institutions have been joined by a multitude of competitors from Europe, US, and the UK who are all seeking to win for themselves a share of the lucrative market. Today, mortgage deals available are characterized by very flexible terms than any mortgage lenders have been willing to offer in the past. The new packages therefore mean you can take advantage of the discount periods, you can make under/ over payments, you can offset your existing loan by taking a mortgage or you can also opt for an interest only type of mortgage. Most people today who had taken mortgages in the past are switching to new and better terms by remortgaging.
As for the borrowers also, with the passing of time, the value of their property significantly increase and so is the income. This therefore goes without saying that most people are eligible for mortgage packages that they may not have been eligible for in the past. The mortgages attract lower rates of interest and better terms and conditions.