| Some Information Regarding Mortgages And Remortgages |
| Articles - Mortgage |
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Mortgages and remortgages are two forms of what are known as home loans.
Mortgages and remortgages are two forms of what are known as home loans. Both mortgages and remortgages are secured on residential property, and the amount of mortgage or remortgage that can be granted depends on the available equity on the property. Equity is the difference between what the house is worth and the outstanding mortgage value on the property. This means that based on a mortgage balance of180,000 which is secured on a property valued at 300,000, the equity would be 120,000. For both remortgages and mortgages lenders are no longer willing to grant 100% LTV products. Very few mortgage lenders are even prepared to advance 95% LTV mortgages and remortgages.Even 90% LTV mortgages and remortgages are only available from a minority of lenders. The situation in the mortgage and remortgage market place is a very different place now from it was at the end of 2006 up to the beginning of 2007 when 100% LTV remortgages and mortgages were readily available; The Northern Rock Building Society even had a mortgage plan whereby a borrower could borrow up to 25% more than the value of the property. However what happened to that society is history. Remortgages and mortgages have low rates of interest at this moment in time and tracker remortgages and mortgages are at an all time low. What makes their repayments so low is that they follow or track the Bank Of England base lending rate which is at the historic low on 0.05%. At present tracker deals are available from 1.98% for those with a maximum 60% LTV and from 1.99% for those with a maximum 70% LTV. Therefore in spite of an aura of gloom and doom in the financial sector mortgage products are still healthy. Fixed rate remortgages and mortgages abound starting at about 3%, and as such the mortgage and remortgage sector still offer attractive products. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. For more information please visit remortgages |