There are various types of homeowner loan products and these are such products as secured loans, mortgages and remortgages. As these are all secured on the asset of property, it is only homeowners who are eligible to apply.
A remortgage, as the prefix clearly states, is the redoing of something and in the case of a remortgage it is the rearranging of a current mortgage.
A remortgage is a home loan that takes the place of an existing mortgage.
The amount of mortgage or remortgage that can be raised against a property depends on the amount of equity available on the property itself. Equity is what is left when the mortgage balance is deducted from the actual worth of the property. If a property has a value of 400,000, and the mortgage secured on it is 220,000, the available equity is’0,000.
Unlike in the past 100% remortgages and mortgages are no longer available let alone the 125% mortgage that used to be available from the Northern Rock Building Society, and remember what went wrong there.
This is all in the past and 125% LTV remortgages and mortgages no longer exist.The 25% LTV mortgage recently introduced by the Nationwide is only a plan to help existing customers who have no equity in their property due to the current economic climate.
If they need a mortgage to move to another house the Nationwide are willing to grant them 125% of the property value to assist them.
Remortgages of 95% are available from a handful of mortgage lenders, and there is even a little better availability at 90% LTV. This would mean that based on the previous example of a property worth 300,000, the largest remortgage available would be 285,000 on a 95% plan and 270,000 on a 90% plan.
Equity is really king at present and the better the LTV is the cheaper the remortgage rate is.If a homeowner has a 40% deposit mortgages and remortgages are available at under 2% which is the lowest ever rate.
A very important change in the mortgage industry is the fact that true self certifications of income for self employed applicants has all but disappeared and Platform is only one of two remaining mortgage lenders who will even consider self declarations of income although even Platform reserves the right to ask for additional back up proof.
Before the credit crunch self certification was rife, and this in fact precipitated the recession itself.
This were certainly vey lax before, but on the other hand they are perhaps a bit too strict now.
Looking to find the best deal on remortgages then visit www.championfinance.com to obtain the best remortgage for you.
