Re-Mortgaging - The Plus and The Minus

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When interest rates increase, people on home mortgages tend to give re-mortgaging a second thought.
The latest surveys speak of 14% households who are willing to go through refinancing, should monthly repayments increase by £50 and the percentage triples if repayments also double to £100 more.
Fifty percent of the households say they will look for new and better deals in case repayments rose by £150.
Many people are willing to renegotiate their loans to get out of debt or changing lifestyles in case prices continue to increase.
In the figures of Bank of England, the 2-year mortgage on a fixed rate in 2005 was only 4.
68% compared to a standard 6.
6% rate.
Today, the fixed rate is 5.
71% versus 7.
17% standard rate.
Before you jump into re-mortgaging, either with your existing lender or a new one, it needs careful reconsideration: Credit Standing Good credit status or credit rating gives you an immediate edge where you have plenty of good deals offered in front of you.
Credit ratings are usually computed by tracking loan applicants' history of borrowings and repayments that lenders get to see to assess borrowers' eligibility for loans.
By knowing this, lenders also begin to adjust their terms according to the information reflected in credit reports.
New Client Advantage New borrowers will always have the best benefits as a come-on campaign of lenders.
When you switch lenders, this makes you, in a way, a new client for the lender you are now choosing.
When you do this, expect to pay penalties as you draw your current agreement to a halt in order to switch to a new lender.
In turn, you will also have to shoulder arrangement fees to your new creditor.
Mortgage transfers can set you back to as much as £1000, which is quite a huge amount of money.
Nail the perfect deal Read up as much as you can about getting the right deal for you by flipping through the pages of newspapers, financial magazines, and online sites of mortgage brokers.
This helps you find the perfect deal and nail it.
Interest Rate and Repayments Consolidating debts into your mortgage is a good idea for you to obtain better interest rates.
However, in case you have trouble meeting payment schedules, remember that you are betting your own home so avoid the risk of defaults.
Carefully consider repayments as well, whether to avail of the fixed rate or the standard rate.
If you want to see and learn more about your credit report, then click on over to our blog.
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