A mortgage is a home loan taken out to buy a property, while a remortgage is the moving from one mortgage lender to another, and it is a popular practice for homeowners.
It is naturally only homeowners who can take out remortgages as they are secured on the equity of a property.
Remortgaging is a very common thing for homeowners to do.
In past generations it was fairly common for someone to buy their first property, arrange a mortgage with one mortgage lender and remain with the same lender throughout the lifetime of that mortgage which would normally mean staying with the same lender for twenty five years.
This was the case whether the mortgage borrower stayed at the same property or whether they moved house once or even more in the course of their lifetime.
Currently most mortgage payers obtain quotations for remortgages every few years when their mortgage reverts to the Standard Variable Rate.
Frequently homeowners remortgage every few years to simply obtain a lower rate of interest. At other times remortgaging is the way of raising funds for almost any purpose.
It was of course in past generations much more difficult to obtain a mortgage or remortgage than it is now.
In the past mortgage lenders were only prepared to grant advances of three times what the applicant’s annual income was.
All mortgage lenders now advance more than three times the income with some granting remortgages and mortgages of as much as five times the income.
In addition to this nowadays just as then ,a person’s basic wage is only a fraction of what they actually do earn, as salary also can involve bonus, etc.
In the old days mortgage lenders were unwilling to take much of this income into account and only accepted a tiny fraction of it.
Now all mortgage lenders accept over three times an applicant’s income, and some mortgage and remortgage lenders willingly accept up to five times the earned income.
Some mortgage lenders accept half of all overtime, bonus, commission, etc. and others are even prepared to accept 100% of such additional income.
Nowadays there is no consideration given as to whether the female applicant may give up her job at sometime in the future to start a family.
These are some of the factors that make obtaining mortgages and remortgages simpler now than previously
These are obviously at least some reasons why remortgages and mortgage are easier to obtain at present.
For more information remortgages
