Remortgages Are Not Difficult To Obtain

Category: Finance.

Remortgaging involves paying off your existing mortgage and obtaining a new mortgage, usually at a more attractive interest rate. Depending upon what you wish to achieve determines the type of remortgage you choose.

There are many reasons to remortgage your property and many different remortgages are available from mortgage lenders today. Those who wish to draw cash from the equity of their property can choose a cash back remortgage, or equity release remortgage. Remortgaging is basically just getting a new mortgage to replace the old mortgage. An equity release remortgage gives the borrower a certain percentage of equity that remains on the property. Determining which type of remortgage you obtain is based upon how much you wish to pay monthly, how you wish to pay the money back and whether or not you need to get cash back from the mortgage. Mortgage rates have gone down quite a bit over the past several years.

Many people have existing mortgages at high rates. For this reason, many people in the United Kingdom have chosen to remortgage their property. There are several different types of mortgages available in the market today. By remortgaging, one can generally obtain a lower interest rate and save money on mortgage payments. A standard variable rate mortgage offers a low rate that stays fixed during a certain period. Other variable rate mortgages include a tracker rate mortgage, the rate of which is determined by the base rate set by the Bank of England.

The rate is based upon the rates of competitive lenders. The tracker rate mortgage is generally slightly higher than the base rate. A discount rate mortgage offers a low rate that is not tied to the Bank of England base rate, but also determined by lender. A discount rate mortgage is also offered by many lenders. Variable rate mortgages, such as tracker rates, discount rates and standard variable rates remain at the same rate for a certain period of time, after which they can go either up or down, depending upon the current market. The rate for a fixed rate mortgage is generally higher than those offered for variable rate mortgages, but remains the same during the entire term of the loan. Borrowers who wish to remortgage can also obtain a fixed rate mortgage.

Fees associated with a remortgage include assignment fees, solicitor fees and the cost of a base home valuation. Borrowers must also find out if their existing mortgage charges a repayment fee. These fees are generally incurred by the borrower, although some lenders are offering to pay all or part of these fees. A repayment fee is usually based upon the amount of the loan and is incurred when a mortgage is paid off prematurely. Remortgages are not difficult to obtain. The repayment fee should be considered when a borrower is thinking about remortgaging.

The process is similar to obtaining one s original mortgage. To determine which of the current re mortgages is right for you, visit Finance Tracker to discover rates and terms of remortgages.

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