Some Information Regarding Mortgages And Remortgages

There are numerous types of loans that form the group called home loans, and two members of this group are mortgages and remortgages.

Both mortgages and remortgages are secured on residential property, and the amount of mortgage or remortgage that can be granted depends on the available equity on the property.

For those unfamiliar with the term equity this is the amount left when the mortgage secured on the property is deducted from the value of the property itself.

This means that based on a mortgage balance of180,000 which is secured on a property valued at 300,000, the equity would be 120,000.

For both remortgages and mortgages lenders are no longer willing to grant 100% LTV products.

Very few mortgage lenders are even prepared to advance 95% LTV mortgages and remortgages.Even 90% LTV mortgages and remortgages are only available from a minority of lenders.

The situation in the mortgage and remortgage market place is a very different place now from it was at the end of 2006 up to the beginning of 2007 when 100% LTV remortgages and mortgages were readily available; The Northern Rock Building Society even had a mortgage plan whereby a borrower could borrow up to 25% more than the value of the property. However what happened to that society is history.

However all is not doom and gloom in the mortgage market as rates available are very good with tracker remortgages and mortgages at a historic low.

The tracker product tracks the Bank Of England which is at an all time low of half of one percent and as the the tracker mortgage is based on this their rates are amazingly good.

At present tracker deals are available from 1.98% for those with a maximum 60% LTV and from 1.99% for those with a maximum 70% LTV. Therefore in spite of an aura of gloom and doom in the financial sector mortgage products are still healthy.

Fixed rate remortgages and mortgages abound starting at about 3%, and as such the mortgage and remortgage sector still offer attractive products.

Learn more about mortgages. Stop by Champion Finance’s site where you can find out all about mortgages and what it can do for you.