Remortgages, mortgages and secured loans all form part of what are known as home loans. This being the case means that they are only granted to homeowners.
Mortgages are the home loan required to actually buy a property whether it is a first or subsequent purchase.
A remortgage is a new mortgage that replaces a current mortgage.
Remortgages and mortgages are based on the equity of a property , and equity is the difference between the value of a property and the mortgage balance. This means that if a property is worth 300,000 and the mortgage balance or the required remortgage is 150,000 the available equity is 150,000.
Before the credit crunch there was availability of 100% mortgages and remortgages with the Northern Rock advancing 125% mortgages which helped towards their downfall.
This is all in the past and 125% LTV remortgages and mortgages no longer exist.The 25% LTV mortgage recently introduced by the Nationwide is only a plan to help existing customers who have no equity in their property due to the current economic climate.
If there is absolutely no equity in their current house of the value is lower than the mortgage balance the Nationwide are granting these homeowners 125% mortgages.
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.
Self certifications of income when applying for a mortgage or remortgage are theoretically still available fom a couple of mortgage lenders, including Platform, but at the end of the day these mortgage lenders can still ask for back up proof of self employed earnings by means of an accountant's certificate or even full accounts.
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.
Learn more about rmortgages then vist Champion Finance's site to ascertain the best choice of remortgage for your needs.
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