Remortgages Can Offer Great Savings.

One home loan that many are aware of but the meaning of which they are unsure and what it is is a remortgage.

First of all let us start with information on what mortgages are and what mortgages are are the sort of loan needed to buy a house, and this goes whether the mortgage is for a first time buyer to get his or her foot on the first rung of the property ladder or to allow people already homeowners to move from one property to the other..

Mortgages are always required unless the buyer has sufficient ready money available to buy the property out right and there are few in this fortunate position, and as the average home costs more than 160,000 there are not many with this sort of ready money.

Mortgages are set at their original rate for a certain time that can be from a year to on average five years although longer tie in periods are in the market.

While the tie in period is in place there is a settlement penalty to be made if the mortgage is payed back before the right time..

Early settlement charges are different from one mortgage lender to the other but it is seldom lower than 2% of the mortgage balance outstanding and can even be as high as 5% meaning that to settle early would be expensive.

When the tie in period finishes there is no longer any penalty applicable and it is then that a wise homeowner would be advised to obtain a quotation for a remortgage from other providers to compare their quotes to what they have been offered by his current lender.

A remortgage is beneficial as it saves money by moving from one lender to another.

This moving of a mortgage from one provider to another is what is called a remortgage.

Considerable sums of money can be saved by taking out a remortgage as interest rates can vary greatly from one mortgage lender to another and a remortgage arranged with a different bank or building society can have a much lower rate of interest than the Standard Variable Rate of the current lender, and as such it is the sensible course of action to obtain different quotations.

by: Liz Cerry

POST COMMENT

Basic Types Of Offshore Bank Licenses You Should Know About No fax payday loans: Quick Solution of Fiscal Problems Urgent Payday Loans: Ideal To Deal With Any Sudden Emergency Your Low Mortgage Rate Refinance Is Available Now Speedy Payday Loans - Say Bye to Your Small Problems Details About Secured Loans, Mortgages And Remortgages. Instant no faxing payday loans for the uncertainties of life Payday Loans: solving urgent needs Debit card payday loans: Remarkable option for unexpected fiscal urgencies Why a Guarantor Loan? Quick Loans - Avail Speedy Money! Guarantor Loans Vs High Street Loans Usa Payday Loan