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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