Remortgages And Mortgages Before And During The Recession.

There are various types of homeowner loan products and these are such products as secured loans, mortgages and remortgages. As these are all secured on the asset of property, it is only homeowners who are eligible to apply.

Mortgages are the home loan required to actually buy a property whether it is a first or subsequent purchase.

A remortgage is a home loan that takes the place of an existing mortgage.

Remortgages and mortgages are of course secured on the equity on a property, and what equity in fact is is the difference between what a house is worth and the mortgage on the property. If a mortgage is standing at–0,000 and the property has a value of 320,000, the equity in this instance is’0,000.

Before the credit crunch there was availability of 100% mortgages and remortgages with the Northern Rock advancing 125% mortgages which helped towards their downfall.

This said, some people may have heard that the Nationwide are offering 125% mortgages, and this is correct in a restricted way. This 125% mortgage is only available to existing customers who are trapped in negative equity due to the recession and they want or even require to move house perhaps through job relocation for example.

If they owe more on their existing mortgage than the house is worth they can obtain a mortgage on their next property of 125%.

Remortgages of 95% are available from a handful of mortgage lenders, and there is even a little better availability at 90% LTV. This would mean that based on the previous example of a property worth 300,000, the largest remortgage available would be 285,000 on a 95% plan and 270,000 on a 90% plan.

Equity is one of the most important facts that a mortgage lender considers when advancing mortgages and remortgages, and at 60% LTV remortgages and mortgages are available from 1.98% which is the best rate in the history of the mortgage industry.

A very important change in the mortgage industry is the fact that true self certifications of income for self employed applicants has all but disappeared and Platform is only one of two remaining mortgage lenders who will even consider self declarations of income although even Platform reserves the right to ask for additional back up proof.

Before the credit crunch self certification was rife, and this in fact precipitated the recession itself.

Things in the mortgage industry have certainly tightened up.

Want to find out more about mortgages then visit Champion Finance’s site and choose the very best mortgage for you.