The Changing Face Of The Mortgage And Remortgage Sectors
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 mortgage is a form of home loan taken out by either a first time buyer or a home mover to purchase a property.
A remortgage is a home loan that takes the place of an existing mortgage.
Remortgages and mortgages are of course secured on the equity on a property, and what equity in fact is is the difference between what a house is worth and the mortgage on the property. If a mortgage is standing at–0,000 and the property has a value of 320,000, the equity in this instance is’0,000.
Before the credit crunch many mortgage and remortgage lenders were only too happy to grant their products at up to 100% LTV. While the Northern Rock had 125% remortgage and mortgage plans.
This said, some people may have heard that the Nationwide are offering 125% mortgages, and this is correct in a restricted way. This 125% mortgage is only available to existing customers who are trapped in negative equity due to the recession and they want or even require to move house perhaps through job relocation for example.
If there is absolutely no equity in their current house of the value is lower than the mortgage balance the Nationwide are granting these homeowners 125% mortgages.
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 one of the most important facts that a mortgage lender considers when advancing mortgages and remortgages, and at 60% LTV remortgages and mortgages are available from 1.98% which is the best rate in the history of the mortgage industry.
Self certifications of income when applying for a mortgage or remortgage are theoretically still available fom a couple of mortgage lenders, including Platform, but at the end of the day these mortgage lenders can still ask for back up proof of self employed earnings by means of an accountant’s certificate or even full accounts.
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.
Learn more about rmortgages then vist Champion Finance’s site to ascertain the best choice of remortgage for your needs.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
Tags: home improvements, home loans, Mortgage loans, mortgages, real estate, refinancing, remortgages, secured loans
