Remortgages are a homeowner loan specifically for homeowners as remortgages must be secured on the asset of a residential property.
Remortgages pay off an existing mortgage on a property, and a mortgage with a different lender takes the place of the current mortgage. This mortgage lender can be a building society or a bank or any other financial institution which advances remortgages.
A remortgage can be taken out for the exact same amount as the current mortgage, and this is called a like for like remortgage, and the remortgage in this case will simply be to obtain a better rate of interest, with no extra funds being raised.
A mortgage deal usually lasts for two to three years, and a homeowner must retain their mortgage for this period or they can leave their current mortgage lender during this period, but there is normally a penalty to be paid.
The penalty is in the region of about 2% but it can sometimes be slightly less than this or in extreme cases up to 5% of the remaining mortgage balance.This leads to the majority of mortgage borrowers remaining with the same mortgage lender for at least these years.
However it is not uncommon for homeowners to remortgage for a better interest rate during the tie in period as sometimes because of bad advice or very frequently because they sought no advice at all, the interest rate for their existing mortgage is so high that it is worth paying the early repayment penalty to obtain a much better rate of interest by remortgaging with a different mortgage lender.
At the end of the two or three year tie in period mortgage borrowers can choose either to stay with their current mortgage lender and revert to the SVR which stands for standard variable rate or they can remortgage with a different lender.
In the past a large percentage simply stayed with their current mortgage lender as a matter of course with out considering all their mortgage options.
Nowadays however people are more aware of their financial choices, and do not merely blindly stay with their existing lender without thinking about other mortgage options.
The advent of the computer age has also played it's part in educating homeowners that there is plenty of choice in the market place.
There is really no need to shop around yourself as an expert mortgage broker can provide you with all the available options from which to make your own choice. There are so many options that you really would be unwise to reach such a big decision as regards remortgaging with out expert help. - 29904
Remortgages pay off an existing mortgage on a property, and a mortgage with a different lender takes the place of the current mortgage. This mortgage lender can be a building society or a bank or any other financial institution which advances remortgages.
A remortgage can be taken out for the exact same amount as the current mortgage, and this is called a like for like remortgage, and the remortgage in this case will simply be to obtain a better rate of interest, with no extra funds being raised.
A mortgage deal usually lasts for two to three years, and a homeowner must retain their mortgage for this period or they can leave their current mortgage lender during this period, but there is normally a penalty to be paid.
The penalty is in the region of about 2% but it can sometimes be slightly less than this or in extreme cases up to 5% of the remaining mortgage balance.This leads to the majority of mortgage borrowers remaining with the same mortgage lender for at least these years.
However it is not uncommon for homeowners to remortgage for a better interest rate during the tie in period as sometimes because of bad advice or very frequently because they sought no advice at all, the interest rate for their existing mortgage is so high that it is worth paying the early repayment penalty to obtain a much better rate of interest by remortgaging with a different mortgage lender.
At the end of the two or three year tie in period mortgage borrowers can choose either to stay with their current mortgage lender and revert to the SVR which stands for standard variable rate or they can remortgage with a different lender.
In the past a large percentage simply stayed with their current mortgage lender as a matter of course with out considering all their mortgage options.
Nowadays however people are more aware of their financial choices, and do not merely blindly stay with their existing lender without thinking about other mortgage options.
The advent of the computer age has also played it's part in educating homeowners that there is plenty of choice in the market place.
There is really no need to shop around yourself as an expert mortgage broker can provide you with all the available options from which to make your own choice. There are so many options that you really would be unwise to reach such a big decision as regards remortgaging with out expert help. - 29904
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