The Remortgages quote explained

 

If you are thinking of remortgaging your property you will have heard of a remortgages quote. You may not, however, have had this phrase, to be found on websites and adverts in abundance, properly explained to you. Thus we should start with ascertaining what a remortgages quote is.

What is it?
A remortgages quote is an estimate of the amount you are allowed to borrow as a remortgage. It takes into account your total annual income, especially your salary, and sometimes your expenditure as well. Naturally, the quote also depends on the value of the property you wish to remortgage. Considering how much you will be able to repay within the given time frame, financial specialists make an intelligent estimate of the amount you can borrow. This quote is individually prepared in relation to your particular financial circumstances and requirements by specialist remortgage brokers.

Why get a quote?
A professionally prepared remortgages quote can help you see things a little clearer. By setting out the amount you can remortgage your home for, it enables you to compare different deals to find the best interest rate and most suitable repayment plan. On a more base level, it allows you to see if it really is worth getting a remortgage, by comparing the quote to your current deal. If your present mortgage is better, by getting a quote you can save yourself money and time! If you decide that you do wish to go ahead, you can present the quote to your chosen mortgage lender – this will validate your application, proving that you are serious about taking out a remortgage, and a suitable candidate.

What type of remortgage?
Like mortgages, there are several types of remortgage deals for which you may wish to get a quote. A financial specialist will look at your current mortgage and see if they can find a better deal of the same kind, or if a different type of mortgage would be more suitable. Types of mortgage you may consider include a repayment mortgage, the least complicated and oldest type of mortgage. This has a variable interest rate, and you pay off part of the loan and the interest each month. In comparison, there is also the fixed-rate mortgage which, as the name suggests, offers a fixed rate of interest for a set period. Beyond this period, borrowers can change their mortgage without any extra charges. Some lenders, however, automatically switch this to a variable rate at the end of the period. One particular deal that borrowers looking to get out of a bad credit situation may find suitable is a single account mortgage. You pay your total monthly income into one single account, decide how much money is needed in total (for your mortgage, credit cards etc) and agree on a credit limit, also know as a facility. Your home is used as security and the amount you borrow is set against an agreed mortgage rate. The credit limit must be repaid before you retire.

Summary
If you are considering remortgaging your home the next step is to get a remortgages quote from a specialist remortgage broker, who will calculate the best deal for you. It is definitely worth comparing this against your current mortgage to ascertain whether it is actually worth remortgaging. If you decide it is, your quote can be useful in proving to a lender your seriousness about taking out a remortgage, thus it truly is a useful step to consider before you approach the lender directly.

The views in this article represent those of the authors and not those of Speaking Mortgages. This article does not represent financial advice and is purely editorial supplied by third party's. If there is information within this article which you wish to rely on then please check those details with relevant financial or other professionals prior to making any important decisions.