With remortgaging levels still high, many borrowers are using it as a vehicle to raise low-interest capital. But how do lenders view the risks?
The remortgage genie is out of the bottle and no matter how hard lenders try to put it back in, they will be left wanting. Lenders have themselves educated the consumer into the benefits of remortgaging. This effectively means they have shortened the average life of a mortgage ' and its profitability ' because borrowers increasingly understand the benefits and ease of switching their mortgage to another lender. Most lenders accept that, from an industry perspective, this is not in their best long-term interests, but are a long way from knowing how to avoid the pressures to compete vigoro...
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