subject: Remortgages Are Cheap At Present. [print this page] Remortgages are of course when a homeowner moves his mortgage from his current mortgage lender to another mortgage lender, either to simply get a better rate of interest or to raise additional funds for almost any purpose.
Mortgage lenders have very different rates of interest and therefore it is always worth finding out what rates are available.
Others have seen their overtime cut or their working week has been decreased to three or four days instead of the normal five. This makes it difficult for people to make ends meet.
The mortgage broker will deal with all remortgage and mortgage lenders to obtain all the very best rates and can provide you with information about discount remortgages, fixed rate remortgages, variable rates, etc.
However with most mortgage lenders there is no penalty after one or two years, making that the best time to consider changing mortgage lenders either to obtain a lower rate of interest or to release equity on your property for a vast array of reasons.
Equity is the difference between the outstanding mortgage balance and the property value. This means that if your property is valued at 340,000, and your balance is 180,000 the equity would be 160,000.
Do not simply sit on the fence and leave it until your credit rating becomes affected with your inability to meet all your monthly payments, and subsequently will make it difficult to obtain a remortgage when at least the interest rate would be higher if you can even obtain a remortgage at all.
There are a few mortgage lenders who grant 95 % LTV mortgages, and even more at 90% but it is when the LTV is less than 75% LTV that remortgage rates become very cheap.
Compare this to credit cards at 20% to even as much as 40%, home improvement loans, if arranged through the home improvement company at about 25%, and it is not long before how great the savings are becomes apparent.
A very popular purpose for remortgages is to arrange debt consolidation which pays off the current mortgage, credit cards and personal loan debts into one, saving a fortune every month, and making the financial life of a homeowner better .
The best way forward is to contact a whole of the market mortgage and remortgage broker who can provide you with your options, and as rates are so good at present it could be prudent to strike while the iron is hot.
