| Remortgages And Mortgages Then And Now. |
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A remortgage is the changing from one mortgage product to another and normally remortgaging involves changing from one mortgage lender to another.
A remortgage is the changing from one mortgage product to another and normally remortgaging involves changing from one mortgage lender to another. Only homeowners can apply for remortgages as they require to be secured on the asset of a property. Homeowners of and on in life need a remortgage for various reasons. In the dim and distant past when a couple decided to marry they looked for their first house together and then applied for their very first mortgage to buy their little love nest.Having picked out the most suitable mortgage lender for them they often stayed with the same mortgage lender forever at that property. Often when they moved house they remained with the same mortgage lender. These days many mortgage payers change their mortgage it seems as often as they change their clothes. Sometime it can simply be a matter of moving from one mortgage lender to another to obtain a better deal, and at other times remortgages are sought to release funds for a whole variety of reasons. Obtaining a mortgage or a remortgage now is certainly much easier than it used to be. For example the maximum income multiplier was three times the applicant's earned income. All mortgage lenders now advance more than three times the income with some granting remortgages and mortgages of as much as five times the income. In the past mortgage lenders did not accept much of this additional earnings and in general were prepared to take about a quarter of this into the income calculation. Mortgage lenders were also often very reluctant to take the whole of a woman's income into the income calculation, as it could lead to inability to repay if she decided to give up work to start a family. Now it is very different as regards the income multiplier. Although it varies considerably from one mortgage lender to another the minimum times income is 3.25% while some lenders are prepared up to five times the income. Additional income based on commission, bonus and overtime is now readily accepted usually at half of it but some lenders take the whole sum of additional income into the income equation. The question of whether a woman may give up work for family reasons seems to not be taken into account these days This may be because of the fact that very few women ever returned to work after having children, or they at least took five years off until their children started school. This is really indicative in the change in a woman's place in society. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. For more information remortgages |