Site Map - Bad Credit - Bankruptcy - Repossession - Debt Consolidation - CCJs - Remortgage - Home Page - About Us - Contact Us
In today’s society it is all too easy to accumulate debt through credit cards, loans and other lending sources.
A debt consolidation remortgage can help clear off all your unwanted debts bringing them into one month’s easily affordable payment.
Remortgage
What is a Remortgage?
Remortgage (remortgaging) can be known as ‘re-financing’ or lender switching. Remortgaging involves paying off one mortgage lender with the proceeds from a new mortgage related to the same property. Mainly UK citizens use the term ‘remortgage’ for switching their home finance from one company to another.
Difference between a Mortgage & Remortgage
The term mortgage comes originates from old Law French and the term mortgage can also be used with other forms of investments apart from property. In the Uk the term ‘mortgage’ is usually the process of borrowing money to purchase a property with the mortgage lender securing the debt against the property. A remortgage is the process of paying off an ‘initial mortgage’ on a property by switching lenders and thus securing better rates of repayment and/or gaining access to any equity within the property.
Remortgage Process
A remortgage does not mean adding a second charge to or taking a second mortgage against the property. The process of remortgage means to literally switch your initial mortgage to another mortgage lender that can offer better rates (and release equity at the same time). This process might involve not just switching lenders but also switching mortgage products. An experienced remortgage broker can help you in this process and by law (FSA) has to advise you of the best products and deals for you on the market.
Why Remortgage?
Remortgaging can be done by homeowners for several reasons. The biggest ones are to reduce their monthly payments by securing a better mortgage deal, paying off any unwanted accumulated debts usually this is termed as debt consolidation, a homeowner might want to raise extra capital by releasing equity within the property or a home owner might want to pay of their mortgage at an earlier date.
www.RemortgagesQuote.com
Term Explainations
Because there is a high degree of competition between mortgage lenders today securing a better mortgage deal, (remortgaging), can be done by switching mortgage lenders. When switching lenders there are certain things you need to take in to consideration and talk through with your mortgage broker such as: Legal Fees, Valuation Fees, Arrangement Fees, Discharge Fees, Land Registry Fees, Early Redemption Fees, Mortgage Indemnity Insurance Charges.
Type of language used for centuries in English law courts, first used at the time of the Norman Conquest
Mortgage lenders are Banks, Building Societies and financial institutions that lend money to people that are looking to purchase a property, the money lent is then secured on the property itself, and is usually borrowed by people who do not have enough of their own money to purchase the property themselves. Mortgage lenders offer various lending packages also known as ‘mortgage products’ to cater for the different financial needs of the people that are borrowing the money. Also see Council of Mortgage Lenders
Equity is the residual value of a property over and above the mortgage amount secured on it. So if a property has a mortgage of £150,000 but is it worth £250,000 the equity within the property would be £100,000
A first charge is the initial mortgage secured on the property and a ‘second charge’ is any additional loan also secured on the property. A first charge lender/mortgage has the first right/claim against a property and its equity should a default arise and a second charge lender can only go for what remains
Mortgage products relate to the various types of mortgage on the market and being offered by lenders. There are products to suit most borrowers’ needs. Mortgage products are in essence unique/varying ways of borrowing money to purchase your property
A ‘remortgage broker’ is an individual or company who brings together a borrower and lender, a remortgage broker will liaise between the two and find suitable lending institutions that meet the requirements of the borrower. A remortgage broker is a go-between and makes the remortgaging process easy for the borrower. A charge/commission is made by the remortgage broker against the lender usually on the amount borrowed
The FSA stands for ‘Financial Services Authority’. The Financial Services Authority is appointed by the government to oversee and regulate the financial sector and safe guard the needs of borrowers. See www.fsa.gov.uk
Debt Consolidation is the method of condensing multiple loans with multiple repayments into one loan with one repayment, this repayment is usually lower than the sum of all the previous repayments and the debt consolidation loan is usually extended over a period time. When you consolidate you debts you are literally using the proceeds of one main loan to pay off one or more existing loans. People generally utilise the benefits of debt consolidation remortgage if they are experiencing difficulties paying or keeping up payments on outstanding loans.
An ‘equity release remortgage’ enables the homeowner to take advantage of the value of the property over and above an existing mortgage secured on it. If a homeowner experiences financial difficulties or would like to raise some capitol they can apply for an equity release remortgage which will allow them to turn/convert some of their property value built up in the property above the existing loans secured on it
Remortgage (remortgaging) can be known as ‘re-financing’ or lender switching. Remortgaging involves paying off one mortgage lender with the proceeds from a new mortgage related to the same property. Mainly UK citizens use the term ‘remortgage’ for switching their home finance from one company to another.
Difference between a Mortgage & Remortgage
The term mortgage comes originates from old Law French and the term mortgage can also be used with other forms of investments apart from property. In the Uk the term ‘mortgage’ is usually the process of borrowing money to purchase a property with the mortgage lender securing the debt against the property. A remortgage is the process of paying off an ‘initial mortgage’ on a property by switching lenders and thus securing better rates of repayment and/or gaining access to any equity within the property.
Remortgage Process
A remortgage does not mean adding a second charge to or taking a second mortgage against the property. The process of remortgage means to literally switch your initial mortgage to another mortgage lender that can offer better rates (and release equity at the same time). This process might involve not just switching lenders but also switching mortgage products. An experienced remortgage broker can help you in this process and by law (FSA) has to advise you of the best products and deals for you on the market.
Why Remortgage?
Remortgaging can be done by homeowners for several reasons. The biggest ones are to reduce their monthly payments by securing a better mortgage deal, paying off any unwanted accumulated debts usually this is termed as debt consolidation, a homeowner might want to raise extra capital by releasing equity within the property or a home owner might want to pay of their mortgage at an earlier date.
www.RemortgagesQuote.com
Term Explainations
Mortgage Lender Switching:
Because there is a high degree of competition between mortgage lenders today securing a better mortgage deal, (remortgaging), can be done by switching mortgage lenders. When switching lenders there are certain things you need to take in to consideration and talk through with your mortgage broker such as: Legal Fees, Valuation Fees, Arrangement Fees, Discharge Fees, Land Registry Fees, Early Redemption Fees, Mortgage Indemnity Insurance Charges.
Law French:
Type of language used for centuries in English law courts, first used at the time of the Norman Conquest
Mortgage Lenders:
Mortgage lenders are Banks, Building Societies and financial institutions that lend money to people that are looking to purchase a property, the money lent is then secured on the property itself, and is usually borrowed by people who do not have enough of their own money to purchase the property themselves. Mortgage lenders offer various lending packages also known as ‘mortgage products’ to cater for the different financial needs of the people that are borrowing the money. Also see Council of Mortgage Lenders
Equity:
Equity is the residual value of a property over and above the mortgage amount secured on it. So if a property has a mortgage of £150,000 but is it worth £250,000 the equity within the property would be £100,000
Second Charge:
A first charge is the initial mortgage secured on the property and a ‘second charge’ is any additional loan also secured on the property. A first charge lender/mortgage has the first right/claim against a property and its equity should a default arise and a second charge lender can only go for what remains
Mortgage Products:
Mortgage products relate to the various types of mortgage on the market and being offered by lenders. There are products to suit most borrowers’ needs. Mortgage products are in essence unique/varying ways of borrowing money to purchase your property
Remortgage Broker:
A ‘remortgage broker’ is an individual or company who brings together a borrower and lender, a remortgage broker will liaise between the two and find suitable lending institutions that meet the requirements of the borrower. A remortgage broker is a go-between and makes the remortgaging process easy for the borrower. A charge/commission is made by the remortgage broker against the lender usually on the amount borrowed
FSA:
The FSA stands for ‘Financial Services Authority’. The Financial Services Authority is appointed by the government to oversee and regulate the financial sector and safe guard the needs of borrowers. See www.fsa.gov.uk
Debt Consolidation:
Debt Consolidation is the method of condensing multiple loans with multiple repayments into one loan with one repayment, this repayment is usually lower than the sum of all the previous repayments and the debt consolidation loan is usually extended over a period time. When you consolidate you debts you are literally using the proceeds of one main loan to pay off one or more existing loans. People generally utilise the benefits of debt consolidation remortgage if they are experiencing difficulties paying or keeping up payments on outstanding loans.
Equity Release:
An ‘equity release remortgage’ enables the homeowner to take advantage of the value of the property over and above an existing mortgage secured on it. If a homeowner experiences financial difficulties or would like to raise some capitol they can apply for an equity release remortgage which will allow them to turn/convert some of their property value built up in the property above the existing loans secured on it
Variable Rate
A standard variable rate (SVR) is the basic mortgage rate which most lenders offer.Fixed Rate
With this type of mortgage, the interest rate you will pay is for a specific period of time.Base Rate Tracker
A base rate tracker mortgage will always mirror the Bank of England base rate.Capped Rate
A Capped Rate Mortgage is a variation on the fixed rate mortgage.Discounted Rate
This type ofmortgage gives a discount on the lender’s standard variable rate.
Flexible
Flexible mortgages are also known as off set mortgages.
RemortgagesQuote.com is an independent marketing website and not a lender or broker. We do not sell or recommend mortgages;
we pass your information onto the most suitable mortgage broker from our preferred mortgage brokers. A remortgage enquiry from RemortgagesQuote.com does not constitute an application or offer to provide a remortgage.
we pass your information onto the most suitable mortgage broker from our preferred mortgage brokers. A remortgage enquiry from RemortgagesQuote.com does not constitute an application or offer to provide a remortgage.