There are all sorts of loans, including secured loans, and both remortgages and mortgages belong to this secured group of loans.
What forms the security for both mortgages and remortgages is a property, and to be more specific the equity on any particular property.
Equity is the difference between the value of a property and the mortgage secured on it.
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.
Very few mortgage lenders are even prepared to advance 95% LTV mortgages and remortgages.Even 90% LTV mortgages and remortgages are only available from a minority of lenders.
This is in total contrast to the remortgage market up to the start of 2007 when mortgages up to 100% LTV were common practice with the Northern Rock even advancing remortgages and mortgages up to 125% of the available equity on the property. This all of course helped towards the demise of that particular building society.
But all is not doom and gloom in the mortgage market as rates available are very excellent with tracker remortgages and mortgages at a historic 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%.
At present tracker deals are available from 1.98% for those with a maximum 60% LTV and from 1.99% for those with a maximum 70% LTV. Therefore in spite of an aura of gloom and doom in the financial sector mortgage products are still healthy.
Fixed rate remortgages and mortgages abound starting at about 3%, and as such the mortgage and remortgage sector still offer attractive products.
For more information please visit remortgages
