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.
If a property is worth say 320,000 and the mortgage balance is 120,000, the equity would be 200,000.
For both remortgages and mortgages lenders are no longer willing to grant 100% LTV products.
Mortgages and remortgages at even 95% LTV are thin on the ground and are only available from a handful of mortgage lenders.The availability of 90% LTV mortgages and remortgages is not common at present.
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.
Remortgages and mortgages have low rates of interest at this moment in time and tracker remortgages and mortgages are at an all time low.
The tracker remortgage and mortgage do exactly as stated and that is why they are so low at present as they track the Bank Of England Base lending Rate of 0.05%.
Rates as low as 1.98% and 1.99% are out there with the former being available for those with at least a 40% deposit and the latter for those with a minimum 30% deposit.
Even fixed rate remortgages and mortgages are low with rates starting around the 3% mark, and as such although slack equity products are no longer available there are excellent mortgage products still available.
