Re-Mortgaging Look Into It by NiceTime

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									Title:
Re-Mortgaging – Look Into It

Word Count:
751

Summary:
Are you paying more than you need f
or your mortgage? If you’ve had a m
ortgage for a few years, do you kno
w even what your interest rate is?
Once the initial mortgage deal is d
one, you tend to forget about it. T
he payment goes out of your account
 with alarming regularity. If you’r
e on your lender’s standard variabl
e rate, there’s no doubt that you c
an save money by re-mortgaging.

There’s nothing complicated about a
rranging to re-mortgage your proper
ty. People are doing it a...


Keywords:
Mortgages,remortgages,quotes,advice


Article Body:
Are you paying more than you need f
or your mortgage? If you’ve had a m
ortgage for a few years, do you kno
w even what your interest rate is?
Once the initial mortgage deal is d
one, you tend to forget about it. T
he payment goes out of your account
 with alarming regularity. If you’r
e on your lender’s standard variabl
e rate, there’s no doubt that you c
an save money by re-mortgaging.

There’s nothing complicated about a
rranging to re-mortgage your proper
ty. People are doing it all the tim
e. Apart from the simple fact that
you can save money by shopping arou
nd, there are other reasons for re-
mortgaging too.

Someone whose family is growing may
 feel they ought to look for a bigg
er house. If the children are settl
ed in local schools and rising hous
e prices prevent a move within the
area, they may consider improving t
heir current home to provide more s
pace and better facilities. A re-mo
rtgage could provide the money to c
arry out these alterations.

Buy-to-let owners might be in the s
ame situation as you. If they arran
ged their mortgage a few years ago,
 they’re probably paying much more
than they need to. By re-mortgaging
 they may be able to carry out nece
ssary repairs to the property or ma
ybe some improvements, which would
potentially improve the rental inco
me. It may even be possible to incr
ease their property portfolio, prov
iding the deposit and legal fees fo
r their next investment property.

Someone paying in the region of £54
0 a month for their mortgage could
have that figure reduced to £353. T
his is because you can save 2.25% o
n the interest rate by switching fr
om your lender’s SVR to one of the
special discounted deals which are
around at present.

There are lenders who will provide
a re-mortgage package which is free
 of fees and who make no charge for
 valuing your property if you’re re
-mortgaging. Amazingly some will al
so pay for standard legal work too.

Transferring your mortgage should t
ake about 6 weeks from start to fin
ish. Your current lender may charge
 a fee to release the deeds, typica
lly around £300 and there could be
a funds transfer fee of £25.

There are three basic types of mort
gages. These are the traditional re
payment mortgages and the newer int
erest only mortgages, plus another
option – the flexible mortgage.

When it comes to interest, there is
 more choice available. A standard
variable rate mortgage means that t
he rate of interest fluctuates acco
rding to economic pressures and jus
t how much your lender values your
business. Recent levels have been n
ear their lowest for 50 years

With a fixed rate mortgage, the rat
e is fixed so that you know exactly
 what your repayment will be. Unfor
tunately with this type of mortgage
 there is normally an early repayme
nt charge, so if you find a better
mortgage at some time, it could be
costly to get out of the current one.

Then there’s the capped-rate mortga
ge. This sets an upper limit which
can be charged for a fixed period.
If economic conditions are favourab
le, then the lender may reduce rate
 and therefore the monthly payments
 will fall. Because of the security
 that this offers, the interest rat
es tend to be a little higher on on
e of these deals.

For the best savings in the short t
erm, discounted rate mortgages are
the ones to look for. A reduction f
rom the lenders variable rate is ma
de for a fixed period of time. Ther
e may be a 2% offer, which means th
at if the lenders variable rate was
, say, 6.5%, then as long as it rem
ained at that, your mortgage intere
st rate would be at 4.5%. These rat
es are normally offered over two or
 three years. The interest rate is
not fixed. If the lenders SVR incre
ases, then so will your interest ra
te, but for the term of the agreeme
nt, it will remain 2% lower than th
e SVR. The early repayment charge m
ay apply if you decide to move your
 mortgage elsewhere before the end
of the agreed period.

Tracker mortgages, Cashback mortgag
es and Flexible mortgages are also
available. There are plenty of prod
ucts around and the re-mortgaging m
arket is competitive at present. Th
ere’s never been a better time to m
ake that move.

For more details on these products
and some excellent advice, the easi
est move is to find an on-line brok
er. They will have all the informat
ion at their fingertips and will se
arch a wide range of companies to f
ind a deal that’s right for you. Th
ere are some good on-line discounts
 available too.

								
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