The Differences In Mortgages And Remortgages Pre Credit Crunch And Now.
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..
Mortgages are the home loan required to actually buy a property whether it is a first or subsequent purchase.
A remortgage is a home loan that takes the place of an existing mortgage.
Remortgages and mortgages are of course secured on the equity on a property, and what equity in fact is is the difference between what a house is worth and the mortgage on the property. If a mortgage is standing at–0,000 and the property has a value of 320,000, the equity in this instance is’0,000.
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.
Many out there may think that the 125% mortgage is back with the announcement a few months ago by the Nationwide that they are advancing 125% mortgages. This is not available to other than existing Nationwide customers trapped in their current property by negative equity who need to buy another place to live.
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.
Remortgages of 95% are available from a handful of mortgage lenders, and there is even a little better availability at 90% LTV. This would mean that based on the previous example of a property worth 300,000, the largest remortgage available would be 285,000 on a 95% plan and 270,000 on a 90% plan.
Equity is one of the most important facts that a mortgage lender considers when advancing mortgages and remortgages, and at 60% LTV remortgages and mortgages are available from 1.98% which is the best rate in the history of the mortgage industry.
Another major difference pre and in the middle of the recession is the situation regarding pure self certifications of self employed earnings. Only two building societies even consider self declarations now, but even at the last minute they may require further income proof in official format.
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.
This were certainly vey lax before, but on the other hand they are perhaps a bit too strict now.
Looking to find the best deal on remortgages then visit www.championfinance.com to obtain the best remortgage for you.
Related posts:
- The Differences Between Remortgages And Secured Loans. Secured loans and remortgages are very similar forms of homeowner...
- What You Can Do With Remortgages And Homeowner Loans. As both secured loans and remortgages require to be secured...
- There Are Now More Enquiries For Variable Mortgages And Remortgages Than For Fixed Rate Products. The credit crunch started almost two and a half years...
- Remortgages, Mortgages And Homeowner loans A.K.A. Secured Loans And Their Uses. There are a number of different loans that have so...
- Remortgages, Mortgages And Homeowner Loans Before And After. Since the first part of 2007 right through to the...