Remortgage Tips - Page 2 of 6 - Remortgage, mortgage & finance advice

Finding Your Best Second Mortgage Doesn’t Have to be Impossible!

If you wanted to get a mortgage to start buying a home, chances are good that you looked at the bank that already offered you financial products in the past. When we really get ready to get on our feet and have more than just “enough”, we feel pretty good and we want to help anyone that’s actually supported us. So if your bank has already given you a chance on some loans in the past, you probably want your bank to handle your mortgage in the future. In fact, that’s why so many banks are courteous and generous with bank account holders because they know over time, these are going to be the same customers that look to them for mortgage money.

However, what happens when you want a second mortgage? Let’s say that you’ve been in your home for ten years and you’ve racked up a nice bit of equity in the home. Chances are good that you’re going to want to put that equity to good use, right? Chances are good that you’re going to want to really make sure that you can do big things with the money, like renovating your home? This is one of the top reasons why people get a second mortgage in the first place, because the right renovations can really raise your home’s value. If you look at your home and realize that you’re no longer the nicest house on the street, chances are good that prospective buyers are thinking these things. No one can really tell what will happen in their lives, as no one can see the future. So if you can stop for a moment and get the money to make your life better, then there’s really no sense in giving up that chance, is there?

Not at all. You can go online to pull up multiple quotes for a second mortgage, since this is a product that lenders love offering. It’s something that’s secured by the equity in your home, which means that it’s less risky to a lender than an unsecured loan. It will still hurt your credit if you default on an unsecured loan, but the lender will end up risking a lot more than you in this case.

Make sure that you ask plenty of questions and read all the guides you can find.

How to Remortgage Your Property

By Sergio

There are a lot of benefits that you can enjoy by remortgaging your property. Aside form the lower interest rate, lower monthly payments, and tons of special offers, you can also generate some extra cash that will help you finance home improvement projects or a new business venture without hassle. There are several steps to take in order to remortgage your property.

Start by reviewing your current mortgage loan. You need to know the exact net interest rate along with the total costs of the mortgage itself. Check if there is a penalty for settling the mortgage loan early as well as other associated administration costs.

Once these details are gathered, you can start looking into mortgage and remortgage deals from top lenders. Instead of searching for remortgage loans through mortgage brokers, go online and use the free online mortgage search tools to help you find the best options on the market.

Check the Annual Percentage Rates or APRs of the mortgage offers you get from different lenders. The goal is to find the best remortgage loan with lower interest than your existing mortgage. Take into considerations the introductory interest rate, other special offers, and the total arrangement fee you need to cope with when you decide to use the remortgage loan.

It is also necessary to compare remortgage companies and lenders in order to stay on the safe side at all times. Working with a reputable mortgage lender can make the entire process of remortgaging your property a lot easier to complete.

Once you have all the details in hand, you can compare the remortgage deal with your existing mortgage loan thoroughly. If you find that remortgaging your house is beneficial – especially in terms of interest rate and other costs of the mortgage – then you can contact the mortgage lender directly to apply for the mortgage loan.

The rest of the process is actually very similar to the process of taking out a mortgage loan when you first buy the property. The mortgage lender will take care of all the hard work once they have decided to accept your remortgage application.

Sneaky Factors that Come into Play During Remortgage

By Sergio

Remortgaging is a hot trend that’s here to stay, as more and more consumers are beginning to realize the benefits of shopping around for a new mortgage. Although this is a process that has its own share of fees, there are some strong benefits of remortgage that just can’t be ignored. Yet if you have plans to go on maternity leave and enjoy your baby to be, a remortgaging deal might be problematic.

Lenders will want to make absolutely sure that you are going to be able to afford your mortgage payments. This is the case whether you’re working, not working, or raising a family. A contract is a contract is a contract, after all. As long as you’re meeting the terms of that contract, they don’t really care what you do. However, the more variables that you introduce into your life, the more that the lender will get nervous that you’re going to default on your payments. You just need to make sure that you’re looking carefully at the situation at hand.

Lenders will approve a remortgage as long as you meet the affordability requirements. But what happens when your wife goes on maternity leave and you are applying for the remortgage? You will need to go off of your salary over hers, or include the salary that she was receiving right when the application took place. If you’re in doubt of how to approach this, it’s important to bring it up with the lender. You have to go with the most honest numbers that you can. If your wife is going to be returning to work, a letter from your employer confirming the date she will return is critical. In addition to the date, the employer will also need to list the salary that your spouse will have when she finally returns to work, whenever that is. If her income is going to be less, they may end up not approving the remortgage at all.

The truth is that childrearing takes expenses of its very own. You need dot make sure that you’re really focusing on the best solutions possible for your family. Otherwise, you could end up facing a lot of problems in the long run. It’s better to make absolutely sure that you’re thinking about the bigger picture here. The remortgage can indeed go through, but you’re going to have to be pretty up front with your lender to make it happen.

Keep in mind that if you have to take someone’s name off the new mortgage, lenders do indeed charge you for the privilege. Well, we warned you that there are sneaky tricks in the remortgaging game, so just be careful!

Is Remortgaging Damaging?

By Sergio

With many scare stories around about loans such as http://www.cashadvance-247.com/and other kinds of debt it can make people worry about even changing the loans that they currently have. However, you should not believe everything that you read about debt. There is good and bad debt and it is worth using the deals that are around to benefit you.

A remortgage, for example, can be an extremely valuable thing. It can help you to save a lot of money or take advantage of the equity in your home. It is worth looking around at what deals there are and comparing them to your current mortgage, to see whether you can benefit.

The first thing to calculate is the cost of your current mortgage. Look at the interest rate and any fees that you are charged. You will also need to find out whether you have to pay an exit fee as well. Then look at the mortgages that are available for you to swap to. You need to consider the interest rates of course, but also look at the administration fees as these can be quite high. You need to calculate whether the savings that you make will be worth it when you take all of the costs in to consideration.

You may also want to consider whether to increase the amount of your mortgage. This is something that could be damaging. You need to make sure that if you borrow more money, you will be able to afford the repayments. Consider what the costs might be if the mortgage rate increases.

You also need to consider whether to go for a fixed or variable mortgage rate. You may be able to get one that is fixed for a certain time period. This could protect you against rising mortgage rates but you could lose out if rates fall. You will also be tied in and may have to move on to the standard variable rate for a certain time period when you come out of the fixed rate and this may be unfavourable.

Other people may worry about their credit rating if the remortgage. This is unlikely to be a big problem. If you are accepted for a new mortgage then it should help your rating or at least not make it worse. If you are turned down by one company it should not make a difference but if you are turned down by a lot then this could have an adverse effect.

Should You Really Increase Your Mortgage Term During Remortgaging

By Sergio

The remortgaging process is designed to help you free up cash and get better mortgage terms. However, that doesn’t mean that you can walk into it lightly without thinking about all of your options. You just need to make sure that you’re staying as focused as possible. That’s the name of the game, when you really think about it. Gone are the days where you could just hope everything will fall into place. If you’re really serious about getting things done, you will have to make sure that you’re fighting as hard as possible to get where you need to go.

Ultimately, that’s the real name of the game here. You want to make sure that you’re thinking carefully about everything that could come into play from here on out. You want to be sure that you’re thinking about whether or not you should increase your mortgage term. The truth is that your mortgage term is where a lot of your interest comes in. If you’re not thinking about that, you could end up paying a lot more in interest than if you had a smaller term. Unfortunately, most people are just thinking about their mortgage payments every month. The reality is that if you walk into the remortgaging process with this attitude, you are going to pay a ton of money compared to if you just left your term the same or even shortened it. It’s completely up to you to figure out which direction to take.

It’s never a bad idea to make sure that you’re running through the numbers on your own. Yes, your mortgage lender will want to encourage you to take on a longer term because they will make more money in terms of interest. However, you have to step back and remember something. Every financial decision that you make really does affect your family. So if you’re not ready to put things in motion, you need to back and let yourself “cool off”. Far too often we get into the middle of a deal and think that we have to make that deal work no matter what.

That’s going to be a bad idea in so many different ways. You’re much better off ensuring that you’re thinking about the way the numbers should honestly be. Otherwise, what’s the real point in doing anything? You’re just going to make your life harder than ever before, and who really wants to do that?

It’s important that you get things off the ground right now. Talking to an independent financial adviser can be the best way to get things started, but it’ll be ultimately up to you to figure out whether you want to purse the remortgaging or not. If you don’t, then you can always change your mind later, or when more favorable terms come up. Good luck!

Mis-sold PPI: The idea to protect did not happen

By Sergio

The protection mishap seems to never stop even though a High Court ruling has already been implemented years ago. There are still a vast number of credit consumers who, despite having heard of the PPI scandal, has brought were still cheated by the banks they have depended on to help them for a period of time.

When PPI was created and introduced to the market by the financial services industry, it had the most ideal intention. The purpose was to implement an insurance policy that can protect credit accounts and debts from being in arrears by having a sort of security fund charged to consumers that can cover a portion of their repayment if they become unable to for a period of time because they got sick, had an accident, or made redundant at work. Having this made available, banks and other lending offices were also going to be secured from potential loss.

Much to everyone’s disappointment, the selling of Payment Protection Insurance had become quite a scandal as banks themselves who were mandated to protect their consumers were the first to come up with schemes the sell these policies to the point that they breached selling regulations. There had been reportedly millions of customers who were ripped off their hard earned money because PPI was wrongly applied together with their loans, credit cards, or mortgages.

To date, since the discovery of the mis-selling tactics and the High Court ruling, people have been making PPI claims in hopes of getting their payments back plus the interest the premium incurred from the time they were made to buy the policy. A lot of them were able to make it on their own while others had to employ the services of PPI claims advisers. Whichever anyone preferred to reclaim, the process still went the same. The turnaround time was set to an ideal 6 or 8-week review before a decision and the Financial Ombudsman Service were made to intervene should an unsatisfactory resolution or action came up after such. They have been taking over the PPI claims review in the event that a complaint is made against the bank for failure to communicate or for giving a decision contrary to how evident the mis-selling was.

Despite the High Court’s attempt to put a stop to the mis-selling, consumers were still somehow felling cheated at this time. Their PPI claims were either rejected or the amount they were compensated were entirely non-commensurate to what they paid to the policy. However, there has been a reported 85% success rate among potentially hundreds of thousands of credit consumers who reclaimed their mis-sold PPI.

PPI is often mis-sold in several ways. You could either have been aware that you bought it as it was pushed so hard down your throat or you might have not been fully aware until later on that you actually were signed up to it. A great number of people were totally unaware that their banks signed them up to PPI when their application for credit was filed. They could either have applied for a finance agreement through the internet where the PPI sign up tick box was not obviously placed that they overlooked it, or their signatures were forged on the PPI agreement form. [Read more…] about Mis-sold PPI: The idea to protect did not happen

What Does it Really Take to Buy a Second Property

By Sergio

If you’re already thinking about buying a second property, we have to pause and salute you. In a troubled economy, it can feel like pulling teeth just to get into your first property. But if you’ve taken all of the rightly steps and you have everything going for you, then a second property can be a good thing. You can either buy your second property to use as a rental place, or you can turn it into a vacation home. Who needs silly hotels when you can have a home away from home, literally? Either way, you’re going to have to deal with those pesky mortgage lenders and that means knowing where you stand and what you have to do carefully.

You want to look at your first home. Do you have equity in it? If so, you can release the equity through a remortgage situation. This would mean that you don’t need a mortgage for the second property — you just use the proceeds from the remortgaging solution on the first one. However, if you don’t have enough equity, then you’re going to have to visit a second mortgage situation. It bears warning here that if you don’t have the income to maintain two mortgage payments, you’re much better off making sure that you stick to the one. A lot of people rush to a second property, thinking that they will make enough as a landlord to not really worry about that second mortgage. Unfortunately, not every rental market is that strong. Even if you’re buying while rentals are at a premium, you just don’t know what the future holds. You need to view real estate as a long term strategy, not a short term one. Just because it’s sunny outside now, metaphorically speaking, doesn’t mean that the clouds aren’t going to come in.

You will want to get a buy to let mortgage if you’re going to rent the property out. Having a deposit helps because it lets the lender know that you’re serious about stepping up as a landlord. Having savings to cover repairs can also sway lenders, because they know that they’re taking a higher risk that you’ll default. Even if you have no doubt that you will, there’s always that chance. Lenders do not like defaults because they’re going to lose money. Lenders will also look at the potential income that can be generated from that property, which is why buy to let mortgages tend to have higher interest rates.

If you’re trying to buy in another country, like Spain or Portugal, you’re going to find that you’re limited on the mortgage lenders that will give you a mortgage on another property in another country. Foreign property markets can be volatile, which introduces a whole new level of factors into their decision. However, it is possible to find anything you want with a little more effort. Good luck, no matter which path you choose!

In Defense of Interest Only Mortgages

By Sergio

If you’re trying to get into your dream home, there might come a point where you have to look through solutions that others wouldn’t. This is where the interest only mortgage comes into play. While there are some cautions to be had with this type of mortgage, the truth is that life is full of risks. The risks we take can open up a whole new world of reward that we weren’t really thinking about.

Interest only mortgages are exactly what they sound like: a mortgage where you’re just paying the interest. Keep in mind that this doesn’t attack the principal at all. So you will still need to pay down the mortgage later on. Interest only mortgages have their place. They can help you get into the house that you want, and then you can remortgage.

However, in order to pull this off you have to make sure that you will be able to have stable income. If you’re worried about your job, an interest only mortgage just isn’t for you at all. In addition, if you’re concerned about your credit, then this is just another reason not to pursue these mortgages.

The trouble with the media is that once they realize something has a problem, they assume that it’s going to be problematic for everyone. That’s just not the case at all. Why put yourself in a position that’s not a good? You know your limits.

If you know that you’re a strong candidate for repayment, then you should definitely pursue the interest only mortgage. It can give you the cash flow you need to invest into the home, therefore raising the equity faster than if you were to just use a conventional mortgage. Interest only mortgages tend to be easier to qualify for on the whole.

You have to think about what’s going to be best for your family. If you find that it’s cheaper to buy than rent in your area, then you may want to pursue this as well. You need to also sit down with a qualified adviser that can give you better numbers that are much more specific to your situation. Like most of our guides, this is just general advice that cannot substitute for professional information.

Don’t Hold Your Breath – Mortgage Fees Climbing to New Heights

By Sergio

Dreaming about a mortgage? You might need to save up a little more money. Indeed, reports are coming out now that the average mortgage arrangement fee has skyrocketed up to over 1500 GBP. The Government has been running a very long campaign to make borrowing easier, as an attempt to stimulate the economy. However, with fees rising, many would be homeowners are now starting to wonder if this is really the best way to go or if they should continue renting a flat.

The top comparison site, Moneyfacts, reported that arrangement and booking fees are going up and it looks like it will continue to do so. This is a hard piece of reality to take, considering that the mortgage rates are going down. You will probably see many more advertisements telling you all about the latest mortgage rates. If the rates are going down, the lenders have to look at where else they can make profits. The fees are going to be going up even more, but that doesn’t mean that you have to be out of the game completely. It’s just a matter of looking through all of your options.

If you’re really looking to get your fees lowered, you really need to think about getting a higher deposit. The classic “10%” deposit might not be what ultimately serves you. You could need to actually save up a little longer in order to bring some of those fees down. This also gives you the increased negotiation power to lower your mortgage rate a bit more. This will send lenders a sure sign that you really are serious about owning your own home. It’s completely up to you to figure out how you’re going to make things happen.

Many would be homeowners are concerned that the Government really isn’t trying to get them into homes, which is leading to more and more resentment as time passes and the economy continues to get worse.

This news will hit first time homebuyers the hardest, because they aren’t going to have the most deposit. You also will need to think about whether or not the increased fees will shut you out or not. If you can handle the extra fees, you really might be able to get your dream home a bit earlier. Don’t be afraid to look into any schemes that might focus on you as a first time homebuyer, or a lower income buyer. Every little bit helps, so don’t be afraid to check out ALL of your options. Good luck!

Should You Pursue Your Remortgage Options

By Sergio

Thinking about remortgaging? You’re not only at all in this. There are some serious reasons to think about a remortgaging option. One of the top reasons would be to look at a better rate than what you have, or trying to improve your home. Increasing the home’s value is a long term play that can really pay off. You want to make sure that you look at the remortgaging process from start to finish in order to really see if it’s going to be the best thing that you could honestly do for yourself. It’s investing in your home’s future, and that’s very important in today’s uncertain economy. There’s always room for the market to get better, which is why many real estate experts are now saying that you should invest when the market is beginning to dip down a bit. That way when things go up, your home is even more appealing since you already put in the work!

A remortgage option doesn’t require you to move home — you just take out a new mortgage to pay off your current one.

If you’re at the end of your current deal or pretty close, you might want to give remortgaging some serious thoughts. However, be aware that the process has fees and charges of its own. The savings have to outweigh the costs. You should also make sure that your credit is very good — if your credit has slid in the last few years, you need to have a good reason way this is. You also don’t want to have just started a new job. It might look like you just aren’t ready for a remortgage option. Of course, everyone should apply and work with the remortgaging specialist one on one — this guide is very general.

You need to look at the equity already in the property as well. A property with very little equity isn’t a good candidate for remortgage.

You need to look at talking to your current lender for a redemption statement. A lot of people assume that they’re going to have to talk to another lender for remortgaging options, but that’s not true at all. Your current lender may be able to give you some options you hadn’t thought about. They want to keep you as a customer and reward you for your loyalty.

You can also obtain your mortgage quote Key Facts Illustration from the current lender, or from the lender that captures your attention. From there, you can make an appointment with a mortgage adviser. Don’t forget that most of the time you’ll need to bring proof of who you are — there is a list of acceptable identification that you can present.

If you don’t keep up with the payments, your home can still be in danger. This is also a process that takes a few weeks to actually close. This isn’t going to be something quick, so make sure that you are still taking care of all of your current obligations.

The idea of saving money in a troubled economy is definitely one that’s on many UK homeowner’s minds right now. Why not look online for the best remortgage deals around? You just never know what you’re going to uncover!