As a result of the credit crunch, a number of lenders pulled their larger loan-to-value (LTV - the amount lent as a percentage of the property’s value) mortgages in spring 2008. All 125 per cent mortgages were abolished, meaning that borrowers could no longer obtain loans for more than the property’s worth. Although this was not good news for first-time buyers, it also reduced the chances that borrowers already on such deals would be able to get similar percentage loans when they came to remortgage. You may find that you need to build up more equity in your property before you can remortgage as most lenders will only offer a LTV of 95 per cent at the moment.
Lenders are being tighter with who they lend to and how much they lend given the current economic situation, so if you bagged yourself a good mortgage deal a couple of years ago, do not necessarily expect a similar rate this time round.