Most people are well aware of the expressions remortgages and mortgages but are uncertain as to the exact meaning of the words.
The home loan that every person needs to buy a home is called a mortgage, and when buying a house every person needs a mortgage unless they have cash in hand to buy the property out right.
Well over half of the population of the UK own their own home and so in the course of their life time the majority of the population will have held at least one mortgage and as most move house every few years most will have had five or more mortgages in the course of their life.
You can obtainIt a mortgage either by applying directly to a bank or building society or by going through a mortgage broker.
It is much better to get a mortgage broker to arrange a mortgage as he has access to every mortgage product from all mortgage lenders in the UK and the choice of mortgages will be much greater if you do not stick to the one lender who has only a few mortgages to offer and that can prove costly to you.
There are all types of mortgages and again a mortgage broker can explain all these and the main groups divide between fixed mortgages and tracker and variable mortgages but in fact therer are about 2,000 remortgage and mortgage products out there.
As the name suggests a tracker mortgage tracks or follows something and what this is is the Base Lending rate of The Bank of England, and as such rises if the base rate does.
Fixed rate mortgages on the other hand remain constant during however long the fixed rate is arranged and as such you know where you stand.
As a mortgage is the home loan used to purchase a property a remortgage on the other hand is when a mortgage is already in place but the mortgage payer changes the mortgage from one lender to another provider to get a less expensive rate of interest.
The only difference between a current mortgage on a property and a remortgage is that the remortgage replaces the mortgage as in all other ways they are identical with the same interest rates, etc.and come in tracker and fixed rates
The home loan that every person needs to buy a home is called a mortgage, and when buying a house every person needs a mortgage unless they have cash in hand to buy the property out right.
Well over half of the population of the UK own their own home and so in the course of their life time the majority of the population will have held at least one mortgage and as most move house every few years most will have had five or more mortgages in the course of their life.
You can obtainIt a mortgage either by applying directly to a bank or building society or by going through a mortgage broker.
It is much better to get a mortgage broker to arrange a mortgage as he has access to every mortgage product from all mortgage lenders in the UK and the choice of mortgages will be much greater if you do not stick to the one lender who has only a few mortgages to offer and that can prove costly to you.
There are all types of mortgages and again a mortgage broker can explain all these and the main groups divide between fixed mortgages and tracker and variable mortgages but in fact therer are about 2,000 remortgage and mortgage products out there.
As the name suggests a tracker mortgage tracks or follows something and what this is is the Base Lending rate of The Bank of England, and as such rises if the base rate does.
Fixed rate mortgages on the other hand remain constant during however long the fixed rate is arranged and as such you know where you stand.
As a mortgage is the home loan used to purchase a property a remortgage on the other hand is when a mortgage is already in place but the mortgage payer changes the mortgage from one lender to another provider to get a less expensive rate of interest.
The only difference between a current mortgage on a property and a remortgage is that the remortgage replaces the mortgage as in all other ways they are identical with the same interest rates, etc.and come in tracker and fixed rates
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