Find A Great Re-mortgage Deal
Michael Challiner
Don't pay more than you need to for your mortgage. There's
almost certainly a far better deal out there than your current
one. Maybe it's time to get up-to-date with the new mortgage
deals.
As far as your mortgage is concerned, you might be pleased to
know that you can probably save an appreciable amount each
month, by re-mortgaging. If you've been in your home for some
years, you will have built up appreciable equity in it. You
could re-mortgage to improve or extend your home, buy a second
home, combine your loans, or just to save money.
More and more people are switching mortgages all the time, so
whatever your reasons for considering this move, you'll be in
good company.
If you're on your lender's standard variable rate, you will
probably be able to save around 2% on the interest rate by
switching to a two or three year fixed term interest only loan.
If your mortgage sum is around, £100,000, this could save you in
the region of, £2,000 per year. It's true that there are
expenses involved but with the latest mortgages and the number
of lenders in competition for your business, you should be able
to find a fee-free one who will be keen to help you to keep your
expenses right down to the minimum.
When it comes to making a choice, there are so many different
mortgages out there we couldn't begin to list them. You may
find well there's a mortgage better suited to your
circumstances than the one you're currently on, in addition to
the money saving.
Traditional repayment mortgages are probably of more interest
to homebuyers who don't want to take any risks. This type of
mortgage offers the certainty that, as long as payments are
made, the debt will be paid in full by a specified date.
Interest only mortgages are growing in popularity and would
suit borrowers who are not afraid of some degree of investment
risk, in the anticipation that this may allow them to repay
their loan early, or maybe hopefully produce a final sum
greater than the original sum borrowed. Three of the most
fashionable types of interest only schemes are endowment,
pension and ISA (individual savings account) mortgages.
The ISA mortgage is designed so that you can invest your ISA
allowance (£7,000 in 2006). The ISA is designed to hold
investments such as shares, bonds, unit and investment trusts.
Investment gains are free of tax. Most ISA mortgages are
invested in products designed to spread your money over a wide
range of assets. Results from shares and share-based funds have
provided greater returns historically and therefore these types
of ISA are likely to mean that the mortgage debt will be paid
earlier than with other schemes. There could be a tax free lump
sum as a bonus, after paying off the mortgage. Unfortunately,
there is no built in life cover, and it is a fact that there is
always the possibility that the investment income could be less
than adequate. It can be very worrying for some borrowers to
see volatility in the stock market, where shares can be up one
day and down the next.
There are other interest free mortgages available, such as:-
Endowments, which holds the hope of a tax free maturity value
exceeding the mortgage debt and also some in-built life cover.
A pension mortgage, where there's tax relief on your
contributions, a tax free lump sum and again the possibility of
a high maturity value.
Then there are the flexible mortgages, where there's the
possibility of varying the monthly repayments and increasing
them when you're able to. There is also the possibility of
funding all your credit needs.
With such a wide range of mortgages, how do you decide which is
right for you? This is where some help is invaluable. An
on-line broker will know the market inside out and will offer
you all the help you need, searching the whole market to find
the right deal for you.
Your new mortgage could be a great deal better!
About The Author: Great mortgage articles from the Mortgage
Explorer
http://www.mortgage-explorer.co.uk
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