Remortgages are a form of home loan that are only available to homeowners as they must be secured by an asset of some kind , and if it is a case of a residential remortgage the asset is the property itself.
Remortgages pay off an existing mortgage on a property, and a mortgage with a different lender takes the place of the current mortgage. This mortgage lender can be a building society or a bank or any other financial institution which advances remortgages.
A remortgage can be taken out for the exact same amount as the current mortgage, and this is called a like for like remortgage, and the remortgage in this case will simply be to obtain a better rate of interest, with no extra funds being raised.
When a homeowner arranges a mortgage there is what is called a tie in period which means during that time, which normally lasts for two to three years, the mortgage borrower must stay with that mortgage lender or they will have to pay a fairly hefty penalty.
An early repayment penalty is usually 2% of the balance left on the mortgage, and this can run into several thousand pounds, making the average mortgage borrower stay with the one lender during this tie in period.
For those who choose to remain with the same mortgage lender during the tie in period after the end of this they then must decide if the best deal for them is to stay with their current mortgage lender or if remortgaging with another lender would be the best buy for them.
Sometimes however mortgage borrowers realize during this tie in period that their choice of their current mortgage has been a very poor decision, and that they would at the end of the day be better of paying the early repayment charges, and obtaining a better rate by means of a remortgage sooner rather than later.
In the past a large percentage simply stayed with their current mortgage lender as a matter of course with out considering all their mortgage options.
Nowadays however people are more aware of their financial choices, and do not merely blindly stay with their existing lender without thinking about other mortgage options.
In the past generations many people did not seem to even consider that there were other mortgage deals outwith their own building society. Their mortgage lender was like the be all and end all in mortgage terms.Now things are different and most people check out their remortgage options.
He or she will deal with the whole of the market for remortgaging and this will relieve you of the need to make numerous phone calls, or a cold walk down the high street to find out the best remortgage deal for you. - 30462
Remortgages pay off an existing mortgage on a property, and a mortgage with a different lender takes the place of the current mortgage. This mortgage lender can be a building society or a bank or any other financial institution which advances remortgages.
A remortgage can be taken out for the exact same amount as the current mortgage, and this is called a like for like remortgage, and the remortgage in this case will simply be to obtain a better rate of interest, with no extra funds being raised.
When a homeowner arranges a mortgage there is what is called a tie in period which means during that time, which normally lasts for two to three years, the mortgage borrower must stay with that mortgage lender or they will have to pay a fairly hefty penalty.
An early repayment penalty is usually 2% of the balance left on the mortgage, and this can run into several thousand pounds, making the average mortgage borrower stay with the one lender during this tie in period.
For those who choose to remain with the same mortgage lender during the tie in period after the end of this they then must decide if the best deal for them is to stay with their current mortgage lender or if remortgaging with another lender would be the best buy for them.
Sometimes however mortgage borrowers realize during this tie in period that their choice of their current mortgage has been a very poor decision, and that they would at the end of the day be better of paying the early repayment charges, and obtaining a better rate by means of a remortgage sooner rather than later.
In the past a large percentage simply stayed with their current mortgage lender as a matter of course with out considering all their mortgage options.
Nowadays however people are more aware of their financial choices, and do not merely blindly stay with their existing lender without thinking about other mortgage options.
In the past generations many people did not seem to even consider that there were other mortgage deals outwith their own building society. Their mortgage lender was like the be all and end all in mortgage terms.Now things are different and most people check out their remortgage options.
He or she will deal with the whole of the market for remortgaging and this will relieve you of the need to make numerous phone calls, or a cold walk down the high street to find out the best remortgage deal for you. - 30462
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