Self Certification Remortgage Quotes in UK - Getting Best Deal
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With a self-certification mortgage you have a lot more flexibility in getting
a mortgage loan. Usually with a standard repayment the amount you can borrow is
dependent upon a multiple of your provable wage. However the idea of a self
certification mortgage is that it is not essential to be able to prove your
income. However because of the increased risk involved in self certification
mortgages the quotes you get may offer a worse interest rate than a standard
mortgage quotes. However recently self cert mortgages have become more
competitive, but at the same time mortgage lenders are less likely to help you
“exaggerate” your income.
These factors should be borne in mind when getting a self certification
1. Ordinary Mortgage may be possible If Self Cert remortgage quotes
are expensive, look to see whether you cannot get an ordinary mortgage.
Sometimes mortgage lenders are willing to lend on the basis of affordability.
Therefore you might get a deal where you might not have expected to. If you look
very hard you might not need a self cert remortgage.
2. Big deposit helps The bigger the deposit you have, the better rate
you will get. If your mortgage borrowing is over 90% of the house then the
mortgage interest rate will be much higher. If you are Remortgaging to a value
of less than 70% then the interest rate is likely to be quite close to the
standard mortgage rate.
3. Benefit of rising house prices UK If you have bought a house in the
UK in the past 10 years you are likely to have benefited from rising house
prices and therefore you will probably need to only borrow a relatively small %.
Therefore getting a self certification mortgage becomes easier. However beware
UK house prices may start falling soon.
4. Do Look around. Fortunately there are many free online mortgage
dealers who can help you search for the best remortgage deals. Some of these
will specialise in self-cert remortgage deals.
5. Look at Fees Weigh up all the penalties and fees as well as the
rate of interest. A good mortgage dealer should help you to look at the various
costs involved in moving. If the fees are very high it may not be worth doing if
the remortgage term is short.
About the Author
Richard Pettinger studied Politics and Economics at Lady Margaret Hall,
Oxford University. He now works as an economics teacher in Oxford. He enjoys
writing essays on Economic and he edits an Economics Blog focused on UK and US
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Article Published/Sorted/Amended on Scopulus 2007-04-07 15:23:50 in Business Articles