15 Aug 2007 Tell a Friend
Bear in mind that when you possess this type of remortgage, your payments go up as interest rates go up.
A variable rate remortgage generally benefits people who want their payments to go down when interest rates fluctuate downwards, but are willing to pay more when interest rates go up. A variable rate remortgage borrower does not want to be tied into a fixed interest rate in the case that the base rate decreases.One thing you have to remember, regardless of which of the type of remortgages you choose, is that there will be fees for a new survey of your home to determine the value. In addition, there will be arrangement fees, broker fees, legal fees, etc. to deal with.
Types of Remortgage Borrowers
Just like there are different types of remortgage loans, there are also different types of borrowers (good and bad credit borrowers). A good credit borrower is someone who can guarantee that he can shoulder the payments for any of the three types of remortgages. Cautious lenders may limit their market to this type of borrower.
On the other hand, the more daring remortgage lenders may opt to issue any of the three types of remortgages to people with poor credit ratings or bad credit history. Bad credit remortgage lenders will know whether you have poor or negative credit because all lenders conduct a credit check on UK borrowers. They will be looking for evidence of defaults, IVAs, debts, bankruptcy, the credit history proper, mortgage arrears, defaults and CCJs. A negative credit rating could result from factors that are out of your control, such as a divorce, a severe illness, an accident that left you unable to work, and other such things. In such cases, the lender may be willing to accommodate your application and give you a bad credit remortgage. It is important that you provide all the information needed by the lender so that your remortgage application will be considered with care.
It is necessary to get remortgage advice before you choose a loan for your situation, advice such as that given here about the types of remortgages available. You should know that a remortgage is not final. You may switch to other types of remortgages if you decide that a different type of loan will be more financially advantageous. So get to know the types of remortgages in greater detail before you sign on the dotted line.
If you'd like help finding the best fixed rate remortgage, variable rate remortgage, discounted rate mortgage, or bad credit remortgage, take a moment to fill out our short remortgage form, and an adviser from the SimplyFinance network will get in touch to help you on your way to finding the best remortgage deal for you.