With the mortgage marketplace constantly changing and new offers being introduced all the time, many people regularly look into refinancing mortgage loans. The task has been made much easier with the advent of mortgage comparision websites and a good choice of brokers as well as the high street lenders.
Whether you have an impeccable credit record or want to look into the available bad credit mortgage loans, there is likely to be a mortgage product suitable for your needs.
Offers available include discounted variable-rate mortgages, where the lender offers a discount off its standard variable rate, as well as fixed-rate mortgages, where the interest is set at a certain level for a certain period, regardless of whether the lender’s variable rate goes up or down over the period.
Another possibility is the capped-rate mortgage, where there is an upper limit on the interest rate charged and therefore if the lender's variable rate rises above this you will be unaffected, just as you would with a fixed rate mortgage. You benefit if the lender's rate falls below the level of your cap.
Lenders may also offer flexible mortgages, allowing you to underpay or overpay and possibly take payment holidays, while tracker-rate mortgages, either linked to the lender's variable rate or the Bank of England base rate, follow the base rate with a discount or a premium for a set period of time.
If you are looking for straightforward mortgage quote refinance options, contacting high street lenders may be adequate. However, if your lending needs are more complicated, for example you are looking to buy to let, are self-employed or are enquiring into mortgage loans bad credit options, you may need to do a bit of homework investigating mortgage websites, contacting mortgage brokers and other financial advisers. The more work you put in yourself exploring the ways to refinance mortgage loans, the more likely you are to find the best refinance home mortgage loan.
By Ben West