Remortgaging 101:

Important Terms to Know and Understand

According to recent studies, nearly one in three people

are more likely to be paying their mortgage until they

reach their 60s. This is largely due to the increasing

number of first-time homebuyers in the UK. Most of them

might not be able to finish repaying their mortgage until

they’re about to retire. Making the right financial

decisions will help them enjoy mortgage-free retirement

years.

Remortgaging is among the most popular solutions for

many. This option involves paying off the existing

mortgage and switching to another lender to get a better

or more convenient rate. If performed properly and

wisely, remortgaging can help save money. The process

may be complex, but with the help of a financial adviser

or a reliable lending company, customers can make the

right decision.

* Loan-to-Value

* Lender’s Valuation

* Debt Consolidation

Here are some of the most important terms people should know and

understand before deciding to apply for a remortgage.

For homeowners, the loan-to-value

(LTV) ratio is a comparison between their

loan and property’s value. They can

calculate this by dividing their mortgage

amount by their property’s value. The

lower the LTV percentage, the more

deals will be available. It’s best to consult

with an accountant or financing expert

to determine the right value of the property and get the best loan-to-value

percentage.

Lenders conduct surveys on

proposed properties before giving out a

loan or mortgage. The valuation may

sometimes just involve checking the

outside of the property. This can result

in a lower valuation, which hinders the

owners from getting a better rate. It’s

ideal to ask the lender to re-evaluate the property. Providing a list of selling

prices of similar properties, along with the cost of renovations done, is a

good way to support the case.

Loan-to-Value

Lender’s Valuation

Remortgaging is also a popular

option for people looking to consolidate

their debts. Borrowers can apply for a

consolidation remortgage to wrap up

their loans and outstanding credit into

one monthly payment. There might be a

certain amount left for any other types of

expenses.

Remortgaging can be the answer to the people’s loan and financial

problems. Working with a trusted financing company is key to getting the

most convenient rate.

Resource Box:

http://www.nortonfinance.co.uk/Remortgages

http://www.yourmortgage.co.uk/your-mortgage/news/2334823/one-in-three-

will-be-paying-off-mortgage-in-their-60s

https://www.moneyadviceservice.org.uk/en/articles/remortgaging-to-cut-costs

Debt Consolidation