Mortgages And Remortgages Facts.
Mortgages and remortgages are two forms of what are known as home loans.
These two home loans are secured loans and what they are secured against is the equity on a homeowners property, and the maximum sum of remortgage or mortgage available is based on the amount of equity.
Equity is the difference between what the house is worth and the outstanding mortgage value on the property.
This means that based on a mortgage balance of180,000 which is secured on a property valued at 300,000, the equity would be 120,000.
For both remortgages and mortgages lenders are no longer willing to grant 100% LTV products.
Not many banks or building societies have 95% loan to value mortgages and remortgages now. There are not even many mortgage lenders prepared to advance remortgages and mortgages at 90% LTV.
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.
However all is not doom and gloom in the mortgage market as rates available are very good with tracker remortgages and mortgages at a historic 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%.
At present tracker deals are available from 1.98% for those with a maximum 60% LTV and from 1.99% for those with a maximum 70% LTV. Therefore in spite of an aura of gloom and doom in the financial sector mortgage products are still healthy.
Even fixed rate remortgages and mortgages are low with rates starting around the 3% mark, and as such although slack equity products are no longer available there are excellent mortgage products still available.
These two home loans are secured loans and what they are secured against is the equity on a homeowners property, and the maximum sum of remortgage or mortgage available is based on the amount of equity.
Equity is the difference between what the house is worth and the outstanding mortgage value on the property.
This means that based on a mortgage balance of180,000 which is secured on a property valued at 300,000, the equity would be 120,000.
For both remortgages and mortgages lenders are no longer willing to grant 100% LTV products.
Not many banks or building societies have 95% loan to value mortgages and remortgages now. There are not even many mortgage lenders prepared to advance remortgages and mortgages at 90% LTV.
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.
However all is not doom and gloom in the mortgage market as rates available are very good with tracker remortgages and mortgages at a historic 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%.
At present tracker deals are available from 1.98% for those with a maximum 60% LTV and from 1.99% for those with a maximum 70% LTV. Therefore in spite of an aura of gloom and doom in the financial sector mortgage products are still healthy.
Even fixed rate remortgages and mortgages are low with rates starting around the 3% mark, and as such although slack equity products are no longer available there are excellent mortgage products still available.