How to remortgage your home

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How to remortgage your home

Posted On : Aug-13-2010 | seen (549) times | Article Word Count : 553 |

If you are a homeowner and you have a mortgage that is on a standard variable rate (SVR), now might be just the right time for you to remortgage, considering the current state of the mortgage market.

If you are a homeowner and you have a mortgage that is on a standard variable rate (SVR), now might be just the right time for you to remortgage, considering the current state of the mortgage market.

Since the beginning of March 2009, the Bank of England base rate has stood at a record low of 0.5%. This was great news for lots of borrowers and has meant that huge numbers of homeowners who have come to the end of their mortgage deal over the past few years or so, have been benefiting from the low revert-to rates.

Although the average standard variable rate remains very low currently, to avoid any risks many experts are now suggesting that now might be a good time to look into a remortgage.

Amongst the reasons why vast amounts of mortgage experts think remortgaging away from an SVR could be a wise move now, is that 16 different lenders have increased their SVR since base rate dropped to 0.5%. This could likely continue to increase and many more companies could join in the price hike. It is worth noting that no price cuts have been seen during the past year, so waiting for falling rates could be dangerous.

In addition, two lenders have increased their SVR this month already; suggesting SVRs are only going to carry on rising in the foreseeable future, despite the prospect of unchanged base rates.

Also, recent figures show that the cost of fixed rate mortgages had fallen dramatically in recent months, with five year fixed rate mortgage deals starting around 4%, the lowest and cheapest deal since 2003.

Furthermore, the availability and pricing of mortgages at higher loan to values (LTV) has been found to have improved significantly.

Anyone paying an SVR of 3.5% or higher, whose LTV is 85% or less, is most likely to benefit from remortgaging, providing they do not have mortgage arrears within the last 12 months.

To calculate loan to value of your property, take your mortgage balance figure plus the outstanding balance of any secured loans on the property, divide this figure by the value of your property and times the answer by 100. This should give you a figure between 1 and 100. This is your loan to value percentage. If it is less than 85%, a remortgage is definitely a great option that is available to you and a chance worth taking if you want to secure the best possible deal.

Here at Sterling Green we offer mortgages for either first time buyers or people looking for a remortgage. We have independent specialist mortgage advisers who work on your behalf to find you the best product to suit your financial needs. Our mortgage advisers are fully qualified and are on hand to guide you every step of the way through your remortgage.

Remortgaging is a great idea for many reasons. We can help if you simply want a lower interest rate, or to change from a fixed rate to a variable. Even if you want to free up some equity in your property to raise finance, we are able to assist with any of your financial needs.

For a free consultation with one of our qualified advisers, call us on 0800 083 2827.

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<h1>How to remortgage your home</h1> Author: <a href='http://www.articleseen.com/profile_Katie Simpson.aspx'>Katie Simpson</a> If you are a homeowner and you have a mortgage that is on a standard variable rate (SVR), now might be just the right time for you to remortgage, considering the current state of the mortgage market.

Since the beginning of March 2009, the Bank of England base rate has stood at a record low of 0.5%. This was great news for lots of borrowers and has meant that huge numbers of homeowners who have come to the end of their mortgage deal over the past few years or so, have been benefiting from the low revert-to rates.

Although the average standard variable rate remains very low currently, to avoid any risks many experts are now suggesting that now might be a good time to look into a remortgage.

Amongst the reasons why vast amounts of mortgage experts think remortgaging away from an SVR could be a wise move now, is that 16 different lenders have increased their SVR since base rate dropped to 0.5%. This could likely continue to increase and many more companies could join in the price hike. It is worth noting that no price cuts have been seen during the past year, so waiting for falling rates could be dangerous.

In addition, two lenders have increased their SVR this month already; suggesting SVRs are only going to carry on rising in the foreseeable future, despite the prospect of unchanged base rates.

Also, recent figures show that the cost of fixed rate mortgages had fallen dramatically in recent months, with five year fixed rate mortgage deals starting around 4%, the lowest and cheapest deal since 2003.

Furthermore, the availability and pricing of mortgages at higher loan to values (LTV) has been found to have improved significantly.

Anyone paying an SVR of 3.5% or higher, whose LTV is 85% or less, is most likely to benefit from remortgaging, providing they do not have mortgage arrears within the last 12 months.

To calculate loan to value of your property, take your mortgage balance figure plus the outstanding balance of any secured loans on the property, divide this figure by the value of your property and times the answer by 100. This should give you a figure between 1 and 100. This is your loan to value percentage. If it is less than 85%, a remortgage is definitely a great option that is available to you and a chance worth taking if you want to secure the best possible deal.

Here at Sterling Green we offer mortgages for either first time buyers or people looking for a remortgage. We have independent specialist mortgage advisers who work on your behalf to find you the best product to suit your financial needs. Our mortgage advisers are fully qualified and are on hand to guide you every step of the way through your remortgage.

Remortgaging is a great idea for many reasons. We can help if you simply want a lower interest rate, or to change from a fixed rate to a variable. Even if you want to free up some equity in your property to raise finance, we are able to assist with any of your financial needs.

For a free consultation with one of our qualified advisers, call us on 0800 083 2827.About the Author: <a rel="nofollow" href="http://www.sterlinggreen.co.uk">Sterling Green PLC</a>, based in the heart of Manchester City Centre, is a financial management company and as such helps people who are experiencing financial difficulties. Sterling Green experts help with debt management issues <a rel="nofollow" href="http://www.sterlinggreen.co.uk//what-is-debt-consolidation.html">debt consolidation</a> and debt settlement. Article Source: <a href='http://www.articleseen.com/Article_How-to-remortgage-your-home_29189.aspx'> http://www.articleseen.com/Article_How to remortgage your home_29189.aspx</a>

Article Source : http://www.articleseen.com/Article_How to remortgage your home_29189.aspx

Author Resource :
Sterling Green PLC, based in the heart of Manchester City Centre, is a financial management company and as such helps people who are experiencing financial difficulties. Sterling Green experts help with debt management issues debt consolidation and debt settlement.

Keywords : debt management, debt consolidation, debt settlement, secured loans, mortgage,

Category : Finance : Finance

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