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We
have several advisors who specialise in re-mortgages.
Re-mortgaging
has never been simpler with the number of borrowers moving their
deals increasing at rapid amounts. Eight out of ten people should
now re-mortgage, according to our advisors. Don't let laziness,
confusion or misplaced loyalty to your lender stop you from profiting
from some of the best deals around. You may not realise how much
extra money you could have in your pocket every month by just re-mortgaging.
Why is re-mortgaging
so good?
Unless you
been living on the moon for the last few months you will have realised
that the Bank of England interest rate is at it's lowest for decades.
It has been highly publicised that borrowers have not had it so
good since the mid 1950's.
What options
are available?
On the marketplace
there are many options concerning re-mortgaging. These are:
Part and
Part Mortgage - This means you keep one segment of your
loan on an interest-only basis, paying into an investment vehicle
to pay off the loan at the end of the term, while the remainder
is a repayment mortgage. For those who already have investments
designed to pay back the loan, it means that you can maintain your
policy, while increase your payments to make up any shortfall, or
if you move house, the price difference.
Releasing
equity from your home - You can do this by re-mortgaging
instead of moving home. If you simply want to move somewhere bigger
for example, you could save thousands in costs by re-mortgaging,
releasing equity and using the funds to build onto your existing
property.
Changing
your rate - You can now, through re-mortgaging, adjust your
monthly payments to suit your particular lifestyle. You could choose
any of the following:
- Variable
Rate
- The interest rate is not fixed, but rises and falls in line
with changes in interest rates in the economy as a whole · Fixed
Rate - This guarantees a fixed rate of interest at a specific
level for a set period. After the set period has ended, the Standard
Variable Rate will apply.
- Discounted
rate
- This offers an interest rate that is discounted at a specific
rate from the Standard Variable Rate for a set period. Any changes
to the Standard Variable Rate during the set period will also
be reflected in the discounted rate, but the percentage of discount
remains constant. At the end of the set period, the Standard Variable
Rate will apply.
- Capped
Rate - This guarantees the interest rate charged will not
rise above a certain level for a set period. However, if the Standard
Variable Rate goes below the capped rate, the Standard Variable
Rate will apply. Once the set period of the capped rate has ended,
the Standard Variable Rate of interest will be charged.
- Cash
back
- This provides a cash lump sum or a cash percentage of the mortgage
amount to spend as you wish. The cashback amount is paid to the
borrower shortly after completion. The interest rate applied is
usually the Standard Variable Rate.
- Tracker
- This is linked to a benchmark interest rate, such as the Bank
of England base rate, usually for a set period. The rate you pay
moves up and down in line with the benchmark selected. At the
end of the set period, the Standard Variable Rate will apply Re-mortgaging
is not just about saving money- you can also re-mortgage to release
some of the equity that has built up in the value of your home.
This may work out cheaper than a personal loan, as the interest
rate will be much lower, but watch out for any penalties that
lenders may impose.
updated: 11/11/02
To get the best
advice just simply fill in our application form and wait for one
of our many advisors to contact you usually within the next few
hours.
For
more information
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| Useful
reading |
Useful Links |
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"Reverse
Mortgages for Beginners: A consumer guide to every homeowners
retirement nest egg"
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