Remortgages Info

Remortgaging is also known as mortgage-switching, where by you pay off your existing mortgage by applying for another loan at a cheaper rate. Obviously calculations would need to be made in order to work out if this could save you money, otherwise there is no reason to choose this option.With so many remortgaging options available it could be quite time consuming just looking for the cheapest and right mortgage for you and your circumstances. Here at remortgagesinfo.com we have a team of specialists who do the looking for you. We are currently in the process of searching the internet for the best deals available and will post them on this site soon.

A re-mortgage calculator is a very useful way of finding out how much money you can afford in repayments for a mortgage or re-mortgage. The calculator is self explanatory and intuitive. All you need to do is select the amount of money you wish to borrow, then the interest rate you would prefer to pay at and of course how long you want to pay the re-mortgage over. If you are not happy with what you have to pay a month then simply change the numbers around to suit you, it could help you save thousands of pounds.

These calculators are used by all mortgage lenders on the internet. They not only help you decide which mortgage to opt for but they also reduce the amount of time a mortgage advisor needs to advise you.

When you are looking for a new mortgage, a mortgage repayment calculator will show to be very useful. The problem is that most mortgage repayment calculators will only let you see how much your monthly mortgage payments might be. There are, however a few companies that have a mortgage repayment calculator that will also show you how much money you can save over the lifetime of your mortgage, just by including all of your finances together. The results can be very eye opening.

This is because these mortgage lenders offer you accounts that are simply designed to give you real financial flexibility. They make sure that you make the most of your money and also help you to pay off your mortgage and other borrowings early, thus saving you a lot of money on interest.

There are many reasons why existing mortgage holders would want to re-mortgage their property. This could be to consolidate existing debts, make home improvements, go on holiday or simply to buy a new car.There are, however a number of problems and issues that you will need to consider when you re-mortgage. It is very important that you check your re-mortgage offer to make sure that you are getting a good deal. It is always worth considering the savings you can make with a re-mortgage against the cost and penalties. In many cases, it can sometimes be worth paying these fees for the benefit of a new loan, particularly if the savings are substantial or the redemption penalty fee is small.When applying for a re-mortgage, you will generally find that there are often fees attached with a re-mortgage. These fees would include costs like valuation fees, redemption penalties and legal costs.

Valuation Fees and Costs - Your future mortgage lender may charge you for valuation fees. This is due to the fact that most mortgage lenders will not rely on your original survey when assessing the re-mortgage value of your home. However some lenders may offer free valuations as a way to make their offer more appealing or attractive. They are more likely to attract new customers if they are charging less fees.

Redemption Penalties - This is one of the most important issues you need to consider when re-mortgaging. Any special offers usually only last for a set period of time. During this period you will be severely penalised if you try to switch to another product or mortgage provider, either by selling your house or by re-mortgaging.

Lenders want to make sure that you stay with them until they have made a profit. They do this by charging you extremely high fees if you try and switch to another mortgage lender before they have done.These penalties can be mainly critical for the first year of your mortgage. This is to try and ensure that the costs that the lender endures in setting up the mortgage are always covered, regardless of whether or not you stick with the mortgage. The total redemption penalty charges can be as much as a few thousand pounds. This is normally enough to put most people off the idea of switching mortgage lenders. The duration of the penalty period will vary from different mortgage lenders, although there are a high number of mortgages available that have no early redemption charges at all. You must, therefore ensure that when you are looking at various mortgages, you read the small print as well so that you are fully aware of how much, if any, the redemption penalties are if you were to re-mortgage.

Legal Fees and Administration FeesLegal and administration fees will also apply with most mortgages. As with the valuation report fees, lenders may choose to refund these fees if you agree to use their recommended mortgage loan insurance and legal products.There are a number of people who find it hard to re-mortgage their property due to the fact that they have obtained a bad credit history, CCJs, defaults or have simply become self-employed since they originally mortgaged their home.

People are normally refused a mortgage or a re-mortgage because they may be self-employed without accounts, or because they may have experienced bad credit problems. The interest rates of the mortgages will usually reflect the level of the lender, and the level of collateral available. Some borrowers may need a higher income multiplier beyond the normal income multipliers in order to achieve the required amount of mortgage needed. This could simply be because of the rapid increase in house prices, if there is only one wage earner in the household, it would be very hard to obtain a mortgage for these properties using the normal 3 x method.

There are a number of lenders available that can offer these higher income multipliers, but it is very important that the level of borrowings is not only affordable, but is also sustainable if you were to suffer a loss of income for any reason. This could be as a result of unemployment or reduction in income from overtime, bonuses etc.

When these mortgages first came to the UK there were no fixed or discounted rate flexible deals available. Borrowers simply had to choose a variable rate, and the actual rates on offer were not anywhere as competitive as they are today. Alongside this, Flexible Mortgages are now mainly being viewed as suitable for people who have experience of being homeowners, not to point out managing their money, rather than first time buyers. However, as these mortgages have evolved, the benefits to the borrowers have increased and the first time buyers could a lot worse than thinking about taking out a flexible mortgage. Flexible Mortgages are designed to give you better control over your finances, but you need to be cautious as there are different types of flexibility.

Most flexible mortgages should allow you to overpay on your monthly payments, borrow back money from the overpayments, underpay your mortgage payments and also take payment holidays. The most advisable thing to do with a flexible mortgage is to make overpayments against it; this will help to pay the debt off quicker. You must also ensure but any money overpaid is still available for you to use if you need it.

A genuine flexible mortgage will allow you to make underpayments. This facility may be useful when you have periods throughout your mortgage when you have additional expenditure. Most lenders will insist that you have previously made overpayments against your mortgage before they will allow you to make any underpayments.

A re-mortgage is when someone takes out a new mortgage to repay their existing one in order to realise equity and on occasion to reduce monthly payments. In order to do this you will need to transfer your existing mortgage agreement to another lender. A re-mortgage will mean that the new lending company will pay the old provider the balance of the amount outstanding and you will continue making your payments to the new lending company. By re-mortgaging your home, you could save substantial amounts of money on your monthly payments.

One of the more common reasons for re-mortgaging your property is to reduce costs. By simply changing to a lower interest rate you can benefit from lower monthly repayments. You could also keep the monthly repayments the same, therefore, enabling you to repay the loan quicker and reducing the overall term of the mortgage.

When you are looking at re-mortgaging your property, the best advice would be to look around at the lender market at the different offers they have. All mortgage lenders will offer mortgage advice, as they will want to gain a larger customer base. By helping more people, they will have a better chance of gaining more customers. You should use this to your advantage. You should visit a number of different mortgage advisers, which will later enable you to use their knowledge to obtain a better mortgage deal.

As interest rates remain low, a Variable Rate Remortgage could be the right remortgage product for you. If you have found the perfect home but need reassurance regarding which remortgage product to select then researching for this particular type of remortgage is very simple. As the market for variable rate remortgages have increased, the competition has therefore grown and the amount of deals to choose from has increased rapidly.

A variable rate remortgage is simply a loan that is issued by a lender that is secured against a form of your property. The variable rate related to the interest rate that the lender uses to charge you interest. This part is calculated using the Bank of England base rate. The base rate is currently at one of the lowest points it’s ever been and therefore variable rates that are set by lenders are also at their lowest. This is due to lenders having to set their rates around the Bank of England rates.

As variable rate remortgages tend to have lower interest rates, it has made them a popular choice in more recent times; however, the downside is that the remortgage rate can be changed at any time. If the Bank of England decided to increase their base rate at any time, the variable remortgage rate would also rise. Therefore, although you will typically be paying less for your remortgage, if the rates were to increase, your monthly remortgage repayments would also increase due to the fluctuation of interest rates. However, the advantage is that if there was a reduction in the base rate, the variable remortgage rate would decrease which in turn would reduce your monthly remortgage repayments.

If you want the ability to plan your monthly finances and need the financial security that you can budget and plan every month then a Fixed Rate Mortgage could be just what you need. Worrying about your monthly finances can be very stressful; however, this type of remortgage helps you to be able to stay in control of your finances. This particular remortgage product provides the security throughout the term of the Fixed Rate Remortgage that the rate offered will never change and monthly payments will remain the same through the duration of the fixed period.

Fixed Rate Remortgages can be purchased to run from a 2 year period up to a 10 year period depending on lender. All financial institutions set their mortgage rates around the Bank of England base rate. Any changes to the Bank of England base rate will not affect the agreed Fixed Rate Remortgage as it will not be subject to any change during the course of the agreed Fixed Rate period.

If you are proposing to apply for a fixed rate remortgage, you should consider approaching your current lender for advice. They will be happy to provide advice on their current Fixed Rate Remortgage deals and talk you through the application process. Alternatively, other high street lenders can also offer Fixed Rate Remortgage advice.

If your current mortgage is coming to an end and you are looking to re-mortgage to a product that offers protection with mortgage rates, a capped rate re-mortgage could be for you. A re-mortgage is simply replacing the existing mortgage for another one. However, it can be for a different kind of mortgage.

This type of mortgage offers security throughout the term of the loan that the rate will not go beyond a certain maximum. You will also have the option to reduce your mortgage rates should the Bank of England Base rate go down. Therefore, the monthly repayments will always remain the same unless the base rate alters which will then reduce your monthly repayments. The capped rate will be agreed from the start of the re-mortgage period; therefore, you will always be aware of the maximum rate that the mortgage product can peak at as the rate will be capped at a certain point.

Re-mortgaging to a Capped Rate means that you can tie in to the agreed rates for a maximum five year period; however, the terms can differ depending on lender. All mortgage rates are set around the Bank of England base rate. Any changes to the base rate will affect the lenders mortgage rate, if the base rate is reduced, the lenders standard variable rate will go down which in turn will decrease your monthly payments. Some lenders will impose a minimum rate limit, meaning that the capped rate isn’t allowed to go below a certain level. This particular product allows you to the best of both worlds as, if interest rates fall, you benefit from paying monthly repayments at a lower interest rate. If they rise, you are protected from the capped rate perspective as you know that the rates are never allowed to exceed a certain point.

Prospective mortgage applications can be made via your existing lender or by visiting other high street lenders. There is a lot of information to digest regarding re-mortgaging and should you require further clarification on capped rate products that are available, its often best to check with a financial advisor who will usually provide free and impartial advice on the most suitable mortgage deal for you. It pays to research thoroughly as the mortgage market is very competitive, therefore, you could grab yourself a great rate if you check all the relevant options available to you.Interest rates on capped rate mortgages are typically higher than a fixed rate mortgage product as you are able to lock-in to a particular capped rate for a number of years. You will be eligible to make your monthly repayments at an agreed rate, if the interest rates rise then you will be insured against your mortgage product going above a certain point (the cap). If interest rates reduce, you have the advantage of your mortgage rates going down to reflect the reduction. Therefore, a capped rate mortgage can offer you the benefits of insuring you against rate rises, however you might be paying above the standard variable rate (SVR) for the whole duration of the loan should interest rates remain the same.

In order for the re-mortgage application to be agreed, you must pass the relevant credit check performed by the lender. All lenders used this method to assess the suitability of the applicant in relation to the chosen mortgage product.You should be aware that even though you will be protected from any major rate rises, you could be repaying the mortgage on the basis that the agreed interest rate is higher than the SVR. Therefore, if you believe that mortgage rates are going to increase dramatically then this is the right type of mortgage product for you. The lender could also impose redemption penalties should you repay the mortgage earlier than the agreed term. This type of mortgage can also incur an arrangement fee which is payable by you to the lender.

"When you are looking to remortgage it could save you time and money to use a remortgage broker."

When you are looking to remortgage it could save you time and money to use a remortgage broker. Remortgage brokers are specialists in this area who are able to offer you advice and assistance in order for you to find the best remortgage product for you. If your current mortgage deal is going to expire shortly, you can arrange to switch lenders through a remortgage broker who will be able to find you a new mortgage deal that is right for you.

If you are going through the remortgage process, you should already be conversant in the whole process and the procedures attached to it. It can be a very confusing and stressful time, particularly if you are not confident when dealing with financial matters. It can sometimes be beneficial to go through an expert for advice. A remortgage broker will not only be able to offer you independent mortgage advice, they will also be able to arrange the remortgage for you. This will save you time as you won’t have to do endless research looking for a re-mortgage deal that you think is right for you only to discover in the future that you have made the wrong choice.

When considering remortgaging, your next step should be to think about whether you need to raise extra capital by releasing more equity in your property. This can be done by remortgaging for a larger amount than the existing balance of your mortgage. Your existing property will need to be valued by your new lender to assess its value. The lender will then be able to assess how much they are willing to loan to you in comparison to how much you are able to afford to repay on a monthly basis.

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The main reason for remortgaging is to gain a better deal for you with regards to mortgage interest rates. Using a re-mortgage broker will enable them to tailor your specific requirements when searching for the relevant mortgage products available. Using a remortgage broker is often a stronger way to get better remortgage deals. They have the ability to utilise their strong relationships with lenders to gain more attractive interest rates to pass onto you. Sometimes, they also have the ability to gain a bigger margin when borrowers want to borrow more money but the lender isn’t willing to do so.

When using a remortgage broker, they will always ensure that you consider any cost involved with the remortgage process. Depending on lender, there are certain fees that will be imposed on you. Lenders can charge valuation fees, legal fees and any arrangement fees associated with the relevant mortgage product. These will be refunded to you in some cases, however, depending on lender they will have to be paid up front with no refunds.

The remortgage broker doesn’t charge any of these fees; they are all imposed by the relevant lenders fee structure.

The remortgage market is big business for lenders now and many remortgage brokers are best placed to match up a borrower and a lender to the relevant product available. This ensures that the borrower gets the deal that they want and the lender has new business generated for them.

Many remortgage brokers have relevant companies that they work for and these companies have dedicated phone teams working around the clock to process queries.

They ensure that you receive a personal service and strive to provide you with the best remortgage information possible. If you prefer to use the internet to search for remortgage information, again the same lenders all have websites that have very simple advice for you to follow in order to achieve the maximum remortgage deal for you.

Remortgaging is an important process as it can save money in the long term. It’s often seen as a hassle to remortgage, however the benefits far outweigh the negatives. Even though the initial cost can seem expensive if you have to pay fees, they will always be recouped by signing up to a new mortgage with lower interest rates than your existing one. Therefore, over a long period of time, you will be saving yourself money and should always look to remortgage when your current mortgage expires.