Mortgages - How You Can Switch Yours
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James Copper
Apr 26, 2013, 9:40:06 AM4/26/13
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Please consider this free-reprint article written by:
James Copper
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Article Title: Mortgages - How You Can Switch Yours
Author: James Copper
Word Count: 611
Article URL: http://www.isnare.com/?aid=134732&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=134732
Easy Publish Tool: http://www.isnare.com/html.php?aid=134732
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For many borrowers, remortgaging offers a great way to take advantage of a new fixed, tracker or discounted rate. In this way it is often the goal of the borrower to avoid paying the comparably high standard variable rate.
Remortgaging also offers the opportunity to raise funds on your property. If you have owned your property for a few years then there is a high likelihood that the property value exceeds the mortgage or loan secured upon it - this difference is know as the equity.
On the flip side, if you owe more money secured on your home than the property is actually worth then it is said that you are in negative equity, in which case many lenders would be very cautious about taking on your remortgage application.
By increasing the size of your mortgage will allow you to free up any available equity for whatever your purpose.
The Costs
The process of remortgaging is not cheap, however often the benefits will outweigh the costs. Fees and charges will differ from one lender to another and from one mortgage broker to another - it always pays to do your research and shop around!
The common fees and charges involved will include:
# Arrangement and administration fees. These may be added to the loan however you will pay interest on the amount for the term of your mortgage. Again, arrangement fees will differ hugely and can start from 150.00 all the way up to 1,500.00.
# A mortgage valuation fee. This tends to be between 100.00 up to 300.00 - the cost is largely dependent on the value of the property. You may be able to find mortgage deals that will offer a free valuation so therefore it pays to shop around.
# The Higher Lending charge. Generally, if you are looking to borrow in excess of 75 percent of the value of your property, the lender may apply a one-off higher lending charge. This premium protects the lender in the event of mortgage shortfall however it is the borrower that will have to meet the cost.
# Solicitors fees. Conveyancing fees will vary according to the amount of legal work involved. You may be able to find a lender that will offer free legal work.
# Early Redemption Penalty. This charge may be applied if you opt out of your mortgage before the end of any tie in period you may have. This is not usually advisable as the penalty could result in thousands of pounds.
Remortgage Action Plan
1. Approach your lender to find out what they have to offer you at the end of your tie in period. If they offer you an attractive offer, this could mean less paperwork and ultimately less hassle - in many cases however, a remortgage will be arranged with a new lender.
2. Contact your lender for a written redemption statement. This will indicate the exact outstanding balance of the loan and will highlight any penalties or fees charged for redeeming your mortgage.
3. Shop around for a new mortgage deal. When you receive a quotation this will be in the form of a Key features illustration (KFI). This document will outline the interest rate and monthly payments, along with the fees involved and any additional mortgage features.
4. Make a judgement based on your research as to whether it is financially beneficial to switch lenders. Compare the costs with the savings however do not forget that the costs will be payable upfront while the savings will accrue over a period of time.
About The Author: James Copper writes on all areas of finance. He works for http://www.any-loans.co.uk who specialise in secured loans, mortgages and remortgages.
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=134732
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
James Copper
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=134732
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=134732
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: Mortgages - How You Can Switch Yours
Author: James Copper
Word Count: 611
Article URL: http://www.isnare.com/?aid=134732&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=134732
Easy Publish Tool: http://www.isnare.com/html.php?aid=134732
*********************** ARTICLE START ***********************
For many borrowers, remortgaging offers a great way to take advantage of a new fixed, tracker or discounted rate. In this way it is often the goal of the borrower to avoid paying the comparably high standard variable rate.
Remortgaging also offers the opportunity to raise funds on your property. If you have owned your property for a few years then there is a high likelihood that the property value exceeds the mortgage or loan secured upon it - this difference is know as the equity.
On the flip side, if you owe more money secured on your home than the property is actually worth then it is said that you are in negative equity, in which case many lenders would be very cautious about taking on your remortgage application.
By increasing the size of your mortgage will allow you to free up any available equity for whatever your purpose.
The Costs
The process of remortgaging is not cheap, however often the benefits will outweigh the costs. Fees and charges will differ from one lender to another and from one mortgage broker to another - it always pays to do your research and shop around!
The common fees and charges involved will include:
# Arrangement and administration fees. These may be added to the loan however you will pay interest on the amount for the term of your mortgage. Again, arrangement fees will differ hugely and can start from 150.00 all the way up to 1,500.00.
# A mortgage valuation fee. This tends to be between 100.00 up to 300.00 - the cost is largely dependent on the value of the property. You may be able to find mortgage deals that will offer a free valuation so therefore it pays to shop around.
# The Higher Lending charge. Generally, if you are looking to borrow in excess of 75 percent of the value of your property, the lender may apply a one-off higher lending charge. This premium protects the lender in the event of mortgage shortfall however it is the borrower that will have to meet the cost.
# Solicitors fees. Conveyancing fees will vary according to the amount of legal work involved. You may be able to find a lender that will offer free legal work.
# Early Redemption Penalty. This charge may be applied if you opt out of your mortgage before the end of any tie in period you may have. This is not usually advisable as the penalty could result in thousands of pounds.
Remortgage Action Plan
1. Approach your lender to find out what they have to offer you at the end of your tie in period. If they offer you an attractive offer, this could mean less paperwork and ultimately less hassle - in many cases however, a remortgage will be arranged with a new lender.
2. Contact your lender for a written redemption statement. This will indicate the exact outstanding balance of the loan and will highlight any penalties or fees charged for redeeming your mortgage.
3. Shop around for a new mortgage deal. When you receive a quotation this will be in the form of a Key features illustration (KFI). This document will outline the interest rate and monthly payments, along with the fees involved and any additional mortgage features.
4. Make a judgement based on your research as to whether it is financially beneficial to switch lenders. Compare the costs with the savings however do not forget that the costs will be payable upfront while the savings will accrue over a period of time.
About The Author: James Copper writes on all areas of finance. He works for http://www.any-loans.co.uk who specialise in secured loans, mortgages and remortgages.
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=134732
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
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