Some Information Regarding Mortgages And Remortgages
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 the value of a property and the mortgage secured on it.
To give an example of what equity in fact is, on a property valuation of 250,000 and a mortgage outstanding of 80,000, the available equity would be 170,000.
For both remortgages and mortgages lenders are no longer willing to grant 100% LTV products.
Mortgages and remortgages at even 95% LTV are thin on the ground and are only available from a handful of mortgage lenders.The availability of 90% LTV mortgages and remortgages is not common at present.
This is a huge change from the past when before the credit crunch borrowers could easily obtain a mortgage or remortgage of 100% the value of the property. There was even availability of 125% mortgages and remortgages from The Northern Rock. This fool hardy lending was naturally what contributed to the credit crunch.
Remortgages and mortgages have low rates of interest at this moment in time and tracker remortgages and mortgages are at an all time low.
The tracker remortgage and mortgage do exactly as stated and that is why they are so low at present as they track the Bank Of England Base lending Rate of 0.05%.
Tracker remortgages and mortgages are available with interest rates as low as 1.98% and 1.99% if the equity for the latter is a maximum of 70% LTV and for a maximum of 60% LTV for the 1.98% rate.
Fixed rates are available from round the 3% mark, and as such although equity margins have tightened there are still excellent remortgage and mortgage deals to be had.
Learn more about mortgages. Stop by Champion Finance’s site where you can find out all about mortgages and what it can do for you.
