Remortgages are the moving of a mortgage from one mortgage lender to another and taking out a remortgage is a common thing, for homeowners to do.
Only homeowners can apply for remortgages as they require to be secured on the asset of a property.
Homeowners of and on in life need a remortgage for various reasons.
Until about twenty odd years or so again most people applied for their first mortgage when they were getting married. Very few bought houses before that. They approached mortgage lenders and having chosen one very often stayed faithful to the same mortgage lender throughout their entire stay at that address.
Even when they moved to a second, third or fourth property they remained with the same lender.
Now most people remortgage every time that their current deal runs out.
Sometimes a remortgage is sought simply to get a better rate of interest, and at other times remortgaging is the way of choice to obtain additional money for numerous reasons.
Obtaining a mortgage or a remortgage now is certainly much easier than it used to be.
In the past mortgage lenders were only prepared to grant advances of three times what the applicant’s annual income was.
Some people only receive a basic salary but many have their income made up of paid overtime, commissions of various kinds, etc.
In addition to this nowadays just as then ,a person’s basic wage is only a fraction of what they actually do earn, as salary also can involve bonus, etc.
Mortgage lenders were also often very reluctant to take the whole of a woman’s income into the income calculation, as it could lead to inability to repay if she decided to give up work to start a family.
Another problem when requiring a remortgage or a mortgage in past generations was that lenders did not like using any or much of a female applicant’s income whether she was single or had a partner.This was because they reckoned that if she left her employment as she wanted to have children that the mortgage would not be affordable on only the husband’s salary.
Some mortgage lenders accept half of all overtime, bonus, commission, etc. and others are even prepared to accept 100% of such additional income.
Nowadays there is no consideration given as to whether the female applicant may give up her job at sometime in the future to start a family.
This may be because of the fact that very few women ever returned to work after having children, or they at least took five years off until their children started school.
These are obviously at least some reasons why remortgages and mortgage are easier to obtain at present.
Have a look at remortgages
