Remortgages And Mortgages Before And During The Recession.
Mortgages and remortgages along with secured loans are all types of loans that are secured on property. Therefore these financial products are only available to those who own their own home, and are not in rented property..
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 remortgage is a new mortgage that replaces a current mortgage.
Remortgages and mortgages are based on the equity of a property , and equity is the difference between the value of a property and the mortgage balance. This means that if a property is worth 300,000 and the mortgage balance or the required remortgage is 150,000 the available equity is 150,000.
Before the credit crunch many mortgage and remortgage lenders were only too happy to grant their products at up to 100% LTV. While the Northern Rock had 125% remortgage and mortgage plans.
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 need a mortgage to move to another house the Nationwide are willing to grant them 125% of the property value to assist them.
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 really king at present and the better the LTV is the cheaper the remortgage rate is.If a homeowner has a 40% deposit mortgages and remortgages are available at under 2% which is the lowest ever rate.
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.
Remortgage and mortgage criteria have very much tightened up and this could do with being relaxed a little.
Learn more about rmortgages then vist Champion Finance’s site to ascertain the best choice of remortgage for your needs.
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