If a homeowner has been considering moving his mortgage to another lender there has never been a better time to do this, as interest rates are so low at present, starting from about 1.98% for homeowners with at least a 40% deposit.
The main reason for this is that since the inception of the credit crunch, which is a pretty mild expression for the on going economic turmoil, many people have seen their incomes cut for a number of reasons.Some of the most unfortunate have lost their jobs and been thrown into the scrap heap of redundancy which could well be a very long protracted state of affairs, as the possibility of new positions being created in the job market seem remote at present.
There is no need for you to personally trawl the inter net let alone the cold windy high street to find the best rates for your own circumstances when an expert mortgage broker has all the knowledge at his finger tips.
However, always pay heed to what your early settlement penalty might be if you settle your current mortgage early, as penalties can be steep.
However, with most mortgage lenders there is no penalty after one or two years, making that the best time to consider changing mortgage lenders either to obtain a lower rate of interest or to release equity on your property for a vast array of reasons.
Equity is the difference between the outstanding mortgage balance and the property value. This means that if your property is valued at 340,000, and your balance is 180,000 the equity would be 160,000.
This is a very cheap way of funding home improvements with remortgages starting at under 2% for those who are in the fortunate position of having good equity.
There are a few mortgage lenders who grant 95 % LTV mortgages, and even more at 90% but it is when the LTV is less than 75% LTV that remortgage rates become very cheap.
Compare this to credit cards at 20% to even as much as 40%, home improvement loans, if arranged through the home improvement company at about 25%, and it is not long before how great the savings are becomes apparent.
In addition to the great savings you will only have one payment monthly making our finances easier to handle.
Therefore, there is no point in struggling on when a low interest rate remortgage will remove all your financial pressures, and you can start to reclaim your life.
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