Remortgage tips
February 13, 2009 by admin
Filed under Remortgage Advice
When the Bank of England’s base rate is falling, many homeowners with fixed-rate mortgages may be tempted to remortgage and switch over to a tracker mortgage with a lower interest rate.
If you’re one of them, it’s vital you do the maths, think ahead - and remember why you chose a fixed-rate mortgage in the first place. That’s not to say you should definitely stick with your fixed rate, but you certainly should think it through carefully.
Do the maths
How much would it cost you to remortgage? If your current contract mentions an ‘Early Repayment Charge‘ (ERC), that means you’ll have to pay your mortgage lender a certain amount if you exit your mortgage deal before a pre-defined time. And be aware that the tracker mortgage you’re looking at could well come with an arrangement fee. Depending on the size of these two figures, you could actually end up paying more than you’d save if you did remortgage.
Think ahead
What do you think lies ahead for the economy? Interest rates might be dropping now, but no-one anyone knows where they’ll be in a year. If they suddenly shot ‘through the roof’, the consequences for people with tracker mortgages could be severe - but people with fixed-rate mortgages would see no change at all to their monthly payments.
Of course, many people with tracker mortgages may be planning to keep a close eye on the base rate and switch to a fixed-rate mortgage as soon as it starts to rise, but is this really a safe strategy? If the base rate (and therefore the cost of their tracker mortgage) jumps several points overnight, they may well find that the interest charged on all new fixed-rate deals jumps just as much - and just as suddenly! In other words, the only fixed-rate deals available could be a lot more expensive than the one they’re on right now.
Remember why…
So remember why you chose a fixed-rate mortgage to begin with. Whatever happens to the economy, a fixed rate means your monthly mortgage payments won’t change.
After all, the base rate can only sink to zero - but there is (in theory, at least) no upper limit at all. Seeing your monthly mortgage payments drop by, say, £200, might be enjoyable, but what would happen to your budget if they suddenly rose by £200?
If you’re not certain you could afford that, then maybe you should stick with your fixed-rate mortgage. You won’t get to celebrate when the base rate goes down, but you won’t need to worry about it going up either - and when the economy’s going through an unpredictable period, isn’t it good to have a bit of stability in your finances?
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Getting a remortgage
January 28, 2009 by admin
Filed under Remortgage Articles
If you are thinking of getting a remortgage click here
Getting a remortgage is one of the biggest financial decisions you will have to make. As with a new mortgage, it’s a big financial commitment - but when it comes to remortgaging, it’s possible to save yourself a lot of money each month compared with your existing mortgage agreement.
Why do people remortgage?
End of existing mortgage deal
Most mortgage deals offer special terms that usually last a few years before reverting to the lenders standard variable rate, and once those terms are up, it’s time to remortgage.
You can either remortgage with your existing lender, or with a new lender. The most important thing for you will probably be finding the mortgage deal with the lowest interest rate in order to keep your monthly payments as low as possible.
Debt consolidation remortgage
If you are in debt, you can also use a remortgage to help repay those debts. A debt consolidation remortgage involves withdrawing some of the equity in your home (e.g. any deposit, payments you have made and any increase in your home’s market value) and using it to pay off your debts. You will then repay the borrowed amount on top of your regular mortgage payments.
Tips for getting a remortgage
If you are looking for a remortgage, it’s sensible to take a few simple steps to improve your chances of getting the best deal.
1. Check your credit history
Your credit history is a record of all your credit activity over the past few years. When you apply for credit (including a remortgage), the lender will assess your credit history, based on their own lending criteria, to decide whether or not they can lend you the money.
However, mistakes can sometimes occur - and it’s important to ensure that your credit history is up to date and free of errors in order to give the best account of your credit activity.
All the major credit reference agencies (Equifax, Experian and CallCredit) offer online credit check facilities. If you find any errors on your credit file, all you need to do is call the creditors concerned and ask to have the entry corrected.
2. Take your time
It’s important to give yourself adequate time when looking for a remortgage. Don’t leave it until the last few weeks. Two or three months should be enough to get a reasonable idea of the range of mortgage deals on offer, and where to find them.
Some lenders will allow you to ‘reserve’ your mortgage deal a few weeks in advance - so you shouldn’t have to worry about the best deals being taken off the market shortly before you start your new terms.
3. Get professional mortgage advice
It’s possible to search for a remortgage on your own, but a lot of people prefer to get help from a professional mortgage adviser. Speaking to a mortgage adviser about finding a remortgage can greatly reduce the time and effort involved in finding the best remortgage deals.
A mortgage adviser will be happy to give you free, impartial advice on your remortgage, and may be able to help you find the best deal for your circumstances.
If you are thinking of getting a remortgage click here
What happens if I don’t remortgage?
January 26, 2009 by admin
Filed under Remortgage Articles
If you are coming to the end of your existing mortgage deal, then you may be considering a remortgage. A remortgage, in many ways, works in the same way as finding your first mortgage. However, a remortgage can be a very good opportunity to make savings on your monthly outgoings.
If you do not remortgage, you will normally automatically move onto your lender`s SVR (standard variable rate). This is the lender`s basic rate, which other mortgage deals are often based around.
Shed Burden Some Mortgage Through Bad Credit Remortgage UK
January 9, 2009 by admin
Filed under Mortgage Articles, Remortgage Articles
Bad Credit Remortgage is especially designed remortgage for all those UK residents who have bad credit as they failed to make timely payments in the past, have arrears, defaulted on payments or have county court judgments in their names. Such people are approved bad credit remortgage without much credit enquires. This is mainly because bad credit remortgage is a secured one for the lender and so cuts risks.
You may opt for bad credit remortgage in the UK for variety of reasons. For instance you may want to release equity in your home so that you can use the money for home improvements, buying car, for wedding or holiday expenses or for debt consolidation. Or simply, you may be looking for a longer term remortgage for reducing your monthly payments towards its installments.
There are lenders in the UK who offer bad credits remortgage at competitive rate of interest. You should search extensively for such lenders on internet. Take their rate quotes which are very crucial for a suitable deal. Rate quotes of bad credit remortgage lenders in the UK gives you a clear picture of prevailing interest rate scenario. This enables in picking up a suitable remortgage deal for your circumstances. Go through the lenders terms and conditions carefully before signing a deal with him.
UK Remortgage Advice
December 17, 2008 by admin
Filed under Mortgage Articles, Remortgage Articles
Remortgage Advice
Our parents teach us to be frugal with money in our up bringing and we sometimes become animals of habit throughout our lives. Through the generations, inflation has seen prices increase ten fold and who would have thought years ago that the price of a loaf would touch the £1 figure.
The same can be said about UK property, as the housing market has exploded and the average mortgage has gone way above the £156,000 figure. This is before we align our currency and interest rate with the euro. Ireland has seen a massive explosion in property prices in the post years of joining the euro and it is now an extremely expensive place to buy property.
By comparison the UK property market is still cheap and I dread to think what will happen to property prices when the UK eventually aligns itself with the euro and interest rates are reduced to 3.5%. Will we see the average UK mortgage at the £250,000 figure? I think so!
UK Remortgage Advice
Finding the right mortgage and remortgage is a very important financial decision in life as it is often the largest single expenditure in peoples lives! Most of us have all experienced hard times at some stage in our lives and received letters from banks telling us that they are going to charge us £27 for bouncing a cheque or non payment of a direct debit or standing order. Would you like to hit back?
The value of a cheap remortgage
Now is the time to hit back, find a cheap remortgage and take some of that money back from them by taking advantage of the discounts that they have to offer to existing and new borrowers. There are massive savings to be had by remortgaging and the bigger your mortgage, the more the potential savings. An Englishmans house is his castle but for the average homeowner with an average mortgage that is now in excess of the £100,000 it is an extremely expensive commodity. Many people do not realise that it could pay them to review and move their mortgages by remortgaging on a regular basis and the simple arithmetical advantages of this could be in the thousands as a consequence.
Potential savings on a cheap remortgage
A 2% saving on a £100,000 remortgage works out at £2,000 per year and assuming that this saving can be made every year, it equates to an astronomical £50,000 saving over the normal mortgage term of 25 years. It just doesnt make sense to be putting £40 a week into a mortgage lenders pockets when they already make billions of £s net profit per year.
Quick remortgages
Surveys conducted by lenders have identified that some people are just not aware of the benefits of a cheap remortgage, whilst others have said that they just could not be bothered. Some people have stated that the mortgage and remortgage market are just too complicated. Well, the range of UK mortgages and remortgages have increased dramatically over the past few years and although this increase in mortgage types has added complexity, it has also introduced fierce competition, which has in turn resulted in the availability of some very attractive remortgage products for the customer. With over 10,000 remortgage products to choose from, how do we ensure that we get the best cheap mortgage and remortgage rates?
Cheap Remortgage Advice
Employing the services of a whole of market remortgage broker can pay dividends here as they have sophisticated computer software to narrow down cheap remortgage lenders and arrange the cheapest remortgage rates
Guide to Remortgaging
December 16, 2008 by admin
Filed under Remortgage Articles
With the housing market in decline, and fewer home loans being paid out every month, it can be especially difficult to find a second mortgage loan - particularly if you have bad credit.
A second mortgage, however, could be yours if you are able to find the right lender. And one of the easiest ways to find a suitable lender is to employ a broker.
They will search through hundreds of different lenders to find a second mortgage loan that suits you and fits with your budget. They will take interest rates, fees, charges, loan terms and conditions into account while looking for a lender who can offer a loan you are happy with.
This is much simpler and more efficient than searching for a lender directly. After all, when you contact one lender, you will only be able to compare the loans they have on offer.
On the other hand, contacting several lenders is both time-consuming and complicated. Working with a broker can make things much easier.
You can use a second mortgage loan for almost any purpose. One of the most popular reasons to remortgage is to fund home improvements. However, you may also want to switch mortgage lender or renegotiate with your current lender.
If you have bad credit, a second mortgage with lower interest rates can cut down on your monthly repayments. This can free up extra money, meaning you can save more every month.
You may want to take out a second mortgage to fund a buy-to-let purchase. You will often have to prove that the rental income will cover 130% of the mortgage payments when applying for a buy-to-let loan, so it is important that you have all your figures correct.
A broker will be able to help you when applying for a second mortgage loan. They will be available to answer all of your questions, so your application is more likely to be successful.
Whatever the purpose is, working with a broker takes the hassle out of hunting for a bad credit second mortgage loan.
Gordon Parkes is an expert author with a great interest in the financial industry. He has written extensively about obtaining a second mortgage loan and how you can benefit from a bad credit second mortgage.
Best Remortgage Uk: Generates Extra Cash
December 15, 2008 by admin
Filed under Remortgage Articles
The most luring feature encouraging you to opt for best remortgage UK is the savings made by it. It is so because the loans taken through this plan is cheaper than the existing mortgage plan. Another favor is the reduced monthly repayment installment and higher loaned amount. Every UK adult is eligible to it. Whenever a borrower switches to a new lender the rates are cheaper which in turn lessen the monthly repayment. Best remortgage UK also helps in debt consolidation. It is implemented as the rates involved are least here. Best rates for UK remortgage is available for both homeowners and tenants. Also they serve both good and bad credit rated persons, with slightly higher interest rates indulged with latter.
Best remortgage UK: suggestions
Plan remortgages ‘well ahead of time’
December 12, 2008 by admin
Filed under Mortgage News, Remortgage News
Landlords looking to remortgage should get ready to do so after three to six months.
This is the advice of Kate Faulkner, managing director of Designs on Property.
Noting that mortgage costs increases are “pretty horrendous”, she said that seeking a remortgage must be started “really early”.
Government Action in Mortgage Market
November 28, 2008 by admin
Filed under Mortgage News
The collapse in mortgage lending is becoming a real concern. Next year, the Association of British Bankers predict net mortgage lending could be negative. Despite lower interest rates, it is still as difficult as ever to get a mortgage. As a result, housing sales are at their lowest level on record.
When the government suggested banks should return to 2007, lending levels there was many raised eyebrows. Surely there is no sense in returning to lending levels that caused the housing boom in the first place?
However, the mortgage market has become so constrained that it now appears there is a case for government intervention to overcome the almost paralysis which afflicts the market. We are not suggesting we want a return to interest only, 100% mortgages - far from it. But, the banks have gone from one extreme to another. From freely offering mortgages, they are now being very conservative.
You could argue there is good reason to be conservative. Banks will correctly point out we are facing:
* Rising repossessions,
* Economic recession and rising unemployment
* falling house prices creating negative equity.
* Banks need to improve their balance sheets after years of over lending.
With these factors in mind, it is hardly surprising that banks are being more cautious in their lending. But, if the mortgage industry faces continued constraints we could see a market devoid of buyers; this will cause more problems. It also must be remembered that with low interest rates and falling house prices, the cost of mortgage repayments has fallen significantly. Although repossessions are rising they are still less than 1% of total mortgage loans. It is not that the government should try to stop house prices falling or return to 2007 lending. But, the market is showing signs of market failure, with banks wanting to retreat into a shell. Therefore, there is a case for governments offering some temporary incentives for mortgage lending, and more than just a stamp duty cut.
Interest-only mortgage gap grows
November 20, 2008 by admin
Filed under Mortgage News
A growing number of consumers have no plans in place to repay the capital of interest-only mortgage, according to new research.