Paradigm Mortgage Services is urging brokers to act fast and contact possible remortgage clients.
The mortgage partnership proposition thinks many thousands of borrowers who are sitting on their lender’s standard variable rate (SVR) are likely to have difficulty in securing remortgage finance due to changes in their circumstances and significant changes to both lender’s lending appetite, their product criteria and policies for determining credit-worthy applicants.
It is anticipated that a bank rate rise could be imminent following a third Monetary Policy Committee (MPC) member voting for an increase.
Paradigm is therefore urging advisers to recontact all clients who may be considering their remortgage options in order to detail the current state of the mortgage market and how they may or may not fit within it.
With house prices having fallen in many regions, Paradigm believes borrowers could have less equity in their properties than they anticipate which will mean a higher LTV product is necessary with potentially higher monthly mortgage payments.
Bob Hunt, chief executive of Paradigm Mortgage Services, said: “There appears to be a significant movement underway in terms of remortgage activity particularly as we draw closer to an inevitable increase in Bank Base Rate. Unfortunately
