New mortgages are pretty rare, whereas remortgages make up 90% of all mortgages that a broker / lender will undertake every year. Re-mortgages reflect the market conditions at the time and lenders can shape and control the mortgage products and lending amount offered. So in today's market with the credit crunch upon us, greater care needs to be taken when making mortgage applications.

Remortgages are needed for refinancing once your original offer has expired otherwise the borrower will be paying the lender's default (more expensive) rate. Generally this will be arranged by


your financial advisor who should go out and scour for the best rates on your behalf. If you are looking for non status remortgages for your own residence, your credit score really needs to be squeaky clean. So called bad debt remortgages or adverse remortgages may be needed by households who've got into difficulties and have come to the end of their discounted rate. If you are applying for a buy to let mortgage it should be easier to get the deal you want as these mortgages are essentially a business and will be scored more on that basis, unless it does not stack up. Our remortgage calculators are here to help you work out how much your loan will be.

Here are some handy hints:

1. REMEMBER! When getting a remortgage quote you will be credit scored and if you're shopping around, lenders will assume that you've been rejected if they see numerous enquiries.

2. Get three quotes from your financial adviser or remortgage broker. Take into account your existing lender and what he's done for you to date but realise that everyone is only as good as their last deal and remember that really there is very little loyalty out there. Pretty much, we're all just a number.

3. Take account of the current economic climate and other external factors that can impact on your portfolio. For example, where are we on the interest rate and inflation cycle? (Generally rates increase in between general elections, so perhaps that three year fixed rate does not look quite so attractive now?) Or the state of the stock market: bull or bear? When discussing the mortgage with your broker, he may have some views either as an armchair pundit but also as a salesperson ;-)

4. Consider what stage you are at in your life and determine how long you want to keep this particular investment for - and keep an eye on your original goal for building wealth. Some people actually want to retire at 60 and not have to worry about the state of the markets or what's going to happen to interest rates and will want to divest all their properties. The average length of time that rental investment properties are held for is approximately 17 years. Who's average!

If you didn't get on with your previous financial adviser, try this for other introductions.


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