Remortgages And Mortgages Before And During The Recession.
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 mortgage is a home loan product taken out to buy a property.
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 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 they owe more on their existing mortgage than the house is worth they can obtain a mortgage on their next property of 125%.
There are still a few building societies granting mortgages and remortgages at 90% and very very occasionally 95% LTV, which would mean that if a property is valued at 200,000 on a 90% plan the maximum mortgage or remortgage would be'0,000.
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 recession many mortgage lenders accepted self certifications of income, and this is in fact caused much of the financial woes, as sub prime mortgages were advanced to those who in reality could never afford to make the repayments.
This were certainly vey lax before, but on the other hand they are perhaps a bit too strict now.
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 mortgage is a home loan product taken out to buy a property.
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 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 they owe more on their existing mortgage than the house is worth they can obtain a mortgage on their next property of 125%.
There are still a few building societies granting mortgages and remortgages at 90% and very very occasionally 95% LTV, which would mean that if a property is valued at 200,000 on a 90% plan the maximum mortgage or remortgage would be'0,000.
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 recession many mortgage lenders accepted self certifications of income, and this is in fact caused much of the financial woes, as sub prime mortgages were advanced to those who in reality could never afford to make the repayments.
This were certainly vey lax before, but on the other hand they are perhaps a bit too strict now.