Remortgages Explained!

With so many lenders out there offering what they call the best remortgages or cheapest remortgages, it is a minefield for the consumer to find what they are looking for. At Remortgages-Moneymatchmaker, we will simplify things for you, by searching thousands of products, our aim being to find you the best remortgage to suit your exact circumstances. We will give you a quick decision and if you decide to Go Ahead with us, we can have a competitive solution in place in days!

To Help you to understand some of the terms that you may come accross when looking for a new mortgage or remortgage as they are know, we have put togother a list of remortgage terms and explained what they mean.

100% Remortgage: A 100% remortgage is where a deposit is not paid.

Adverse Credit Remortgage: An adverse credit remortgage (sometimes know as a sub-prime mortgage) is a loan given to those with poor credit. Usually the borrower would have credit issues such as CCJs (County Court Judgements due to non payments of outstanding debt), an IVA (individual voluntary arrangement that allows an individual to avoid bankruptcy and make maximum possible restitution to creditors), arrears (payments that have not been made by the due date), defaults (failure to meet the terms of a loan by not paying the interest or capital due), bankruptcy or repossession problems.

Buy to Let Remortgage: Re-mortgages are sometimes used to raise the deposit for a buy to let remortgage for property that the borrower lets to other tenants.

Capped Rate Remortgage: A capped rate re-mortgage is a mortgage that is guaranteed not to rise above a specific rate within a set period.

Cashback Remortgage: A cashback re-mortgage is a mortgage where the lender refunds a sum of money. This cash is either a flat figure or as a percentage of the loan. The refund is on completion.

Current Account Remortgage: A current account re-mortgage is a flexible mortgage that is combined with a current account. The current account balance is automatically set against the mortgage balance. The interest is only charged on any outstanding amount. This means that interest payments are reduced.

Debt Consolidation Remortgage: A debt consolidation re-mortgage combines existing debts you may have. For instance your present mortgage, bank loans, credit cards, HP, bank could be combined by means of a re-mortgage.

Direct Remortgage: A direct re-mortgage is often the term used to describe a mortgage arranged by a lender over the phone.

Discounted Rate Remortgage: A discounted rate re-mortgage is a variable mortgage that is discounted from a Lender's Standard Variable Rate by a set percentage within a set period.

Equity Release Remortgage: Equity release is designed to allow homeowners to release cash from their property. They are sometimes called home income plans or home reversion schemes. You can choose to receive the equity as a lump sum, as income or as a mixture of both.

Fixed Rate Remortgage: A fixed rate re-mortgage is a mortgage that is charged at a fixed rate within a set period and can cover periods up to 40 years.

Flexible Remortgage: Flexible re-mortgages can mean a variety of things including varying your monthly repayments such as overpaying, underpaying or taking payment holidays. A flexible mortgage could allow you to pay off your mortgage early.

Interest Only Remortgages: With an interest only re-mortgage the initial loan amount remains constant throughout the term of the loan. The monthly mortgage repayments only pay off the interest being charged on this amount. Interest only mortgages are tied to investments such as ISAs, endowment policies and personal pensions which are designed (not guaranteed) to cover the initial loan amount at the end of the loan term.

Let to Buy Remortgage: A let to buy re-mortgage is a mortgage where the borrower's current property is let out and the resulting rental income is used to cover the mortgage repayments on a new property that the borrower uses as a main residence.

Lifetime Remortgage: A lifetime re-mortgage (sometimes referred to as a retirement mortgage) is a form of equity release that is often used by people over the age of 60. There are no monthly repayments to be made - interest is rolled up and, when your home is sold (usually on your death), the full amount is paid off. You always retain ownership of the property until it is sold as long as you live in it.

Offset Remortgage: This is a flexible re-mortgage which allows a borrower to keep their mortgage debt, savings account and current account balances in separate accounts. However, all balances are aggregated for the purposes of interest calculation. As the other balances are taking into consideration, interest is only charged on any outstanding amount. This means that interest payments are reduced.

Online Remortgage Quotes - Nowdays the internet plays a big part in the way that we shop and conduct our finance. Online remortgage quotes are readily available.

Payment Holiday Remortgage: A payment holiday is a period in which the borrower does not make the usual mortgage payments. It is usually available with a flexible mortgage and will only be available where overpayments have previously been made.

Portable Remortgage: A portable re-mortgage is where the terms and conditions of a mortgage product can be transferred without penalty to a new property.

Repayment Remortgage: A repayment re-mortgage is where you repay your loan and interest charged in monthly instalments. Your loan is repaid in its entirely over the full term agreed.

Retention Remortgage: A retention re-mortgage is when the lender holds back some of the loan until stipulated repairs have been carried to the property. The amount is known as retention.

Second Mortgage: A second mortgage is also known as a secured loan. It is an additional mortgage taken out on a property which is already mortgaged.

Self Certification Remortgage: Do you have a problem proving your income? Self-certification re-mortgages (range includes fixed rates, flexible and discount) allow borrowers to state their own income instead of offering payslips or accounts.

Standard Variable Rate: Standard variable rate is a variable rate that the lender determines at their own discretion.

Tracker Remortgage: A tracker re-mortgage is a variable mortgage that is either above or below the Bank of England's base rate by a set percentage within a set period, i.e. it has an interest rate that follows the Bank of England’s Base Rate. Your monthly mortgage interest payments go up when the base rate goes up and go down when the base rate goes down.

We always aim to:

• Keep things simple, fast and straight forward - Therefore no strees or hassle for you!
• Show you how to use Debt consolidation to free you from unwanted debts
• Assist you in borrowing from £3000 to £1,000,000
• Have schemes to borrow over 3 to 35 years
• Be competitive - Currently we have rates that start from as low as 6.9% APR

We hope that you have found the information above useful. If you wish to go ahead with a remortgage application with us, here's what do you do next...

To receive your FREE, No Hassle quote and to see how easy we can make your new remortgage happen, simply:

• Fill in our Online Enquiry form and one of our consultants will provide you with details of the best remortgage options available to you. (Recommended)

• Call us on 0808 141 3341 For more information or finance Help (Our lines are open 24 hours a day, 7 days a week)