The best remortgage deals could be threatened by credit rating downgrades.
Make sure you secure the best remortgage deals now because high street banks may be under threat of credit rating downgrades. This could see mortgage rates rise and SVRs increase further.
Don't get stuck paying more than you have to, call Deal Direct for the latest offers while the best deals are still available.
Some analysts are warning that the economic crisis in the Euro zone could cause credit ratings of major banks such as RBS, Lloyds and Barclays to be cut. Any reduction in credit ratings could increase the banks funding costs and this could have an impact on the cost of mortgages.
Downgrading of a credit rating by one point could force banks to set aside billions of pounds as security against their loans. If the cost of wholesale funding increases then charges for loans may also increase and the best remortgage deals currently available may disappear.
It has been reported that the Spanish bank Santander has already been downgraded, and this may have been an influence on the bank's reduction of its range of mortgage products. If other major banks and building societies were to follow the mortgage market could reduce and the best deals may no longer be available.
Call Deal Direct for the best remortgage deals available in the current market. We are experienced whole of market brokers with access to the best offers from lenders and are well placed to secure the best products and rates.
Contact Deal Direct now.
