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An Explanation About Mortgages And Remortgages.

An Explanation About Mortgages And Remortgages.


    

An Explanation About Mortgages And Remortgages.

by Paulo Jones

When a person wants to purchase a property to live in the first thing to do is to apply for a mortgage which is a loan that is used for property purchasing and a mortgage is required if it is a first property to get a foot on the housing ladder or a mortgage to move to another property.

There is not only one mortgage out there as there are thousands of different mortgage products meaning that unless you are totally in the know about mortgages you should ask a mortgage adviser for his help in choosing the correct product for you.

For those buying their first home the possibility of them being totally in the know about mortgages is remote and proper mortgage advice is essential for first time buyers.

A remortgage is the redoing of an existing mortgage from one mortgage provider to another and as such only homeowners are eligible to apply as there must already be a mortgage in place.

Sometimes a person applies for a remortgage only to get a cheaper rate,and this is called a like for like remortgage when no additional funds are required.

When a homeowner takes out a remortgage for the exact same sum as the current mortgage the remortgage is known as simply like for like as it simply takes the place of the current mortgage but with a lower payment.

The main difference between remortgages and mortgages is that the latter is the loan with which you buy a house and the former is the moving a mortgage from one lender to another.

In addition to like for like remortgages, a remortgage can be a way to release money to buy just about anything.

When thinking about carrying out improvements to your home and garden a remortgage is a good way to do this as nothing makes a tradesman drop the cost of his work faster than the mention of ready cash.

This is a great use of a remortgage.

The truth of the matter is that a mortgage buys a property and a remortgage can do many things .

About the Author:
Looking to find the best deal on remortrgages, then visit www.championfinance.com to find the best mortgage for you.


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