Remortgage

Direct Line remortgage

Direct Line has launched a remortgage package a two year fixed rate tracker mortgage will offer a rate of 4.79 per cent.

Direct Line  believes that people looking for a  remortgage face in a dilemma about whether to take on a fixed rate or tracker mortgage.

Fixed rate mortgages are said to offer certainty and security while customers could benefit from a discount tracker mortgage which follows the Bank of England base rate.

When taking up either mortgage option with Direct Line, customers are entitled to 20 per cent off Direct line home insurance and which comes with two years' free Direct Line home emergency cover.

David Dyer, Direct Line Mortgages commercial director, said: "Fixed rate mortgages offer the security which many customers feel most comfortable with and of late, the two year fixed rate has been the most popular type of mortgage in the country."

The new Direct Line Mortgage has been launched at a time when lenders are tending towards tracker mortgages because of the lower rates offered but Direct Line's three and five year fixed rate mortgages are still being offered at competitive rates.

Abbey Tracker Remortgage of 4.38%

Abbey has just released a two-year tracker mortgage offering a rate of 4.38 per cent it will cost you £699 you can remortgage up to £500,000, this remortgage is available up to 90 per cent loan-to-value.
Barry Naisbitt, of Abbey, said: "There has been a marked change in financial markets in recent weeks which has meant that many lenders have increased their fixed rate mortgages. If people are planning to move house or buying for the first time, it may now be worth considering a tracker mortgage. The reason is that tracker rates are now lower than fixed rates in many cases. Even if the Bank of England increased Base Rate a couple of times in the next two years, a tracker is still likely to work out cheaper as previous interest rate movements have been just 0.25 per cent each time.

Spain remortgages information

Spanish bank fees vary but are typically around 1% of the mortgage amount. They also charge around €500 for the mortgage valuation; stamp duty of 1.8% of the mortgage amount; and notary and registration fees of around 0.5% of the amount borrowed.

Lending criteria

there are two main criteria for determining how much you can borrow: the value of the property and your financial credit rating.
Most Spanish lenders take into account your existing bills/liabilities, including mortgage/rent payments, personal and bank loans, and maintenance payments. When these are added to your proposed Spanish mortgage payments, the total must not exceed 35% of your net monthly income.

Proof of income is required by each lender. This can comprise earned income, pension, investment or rental income. However, not all lenders take all of these into account when determining how much you can borrow.

Insurance

Buildings insurance is compulsory and often sold by the spanish lender.

Valuation

Loans are available up to 80% of the mortgage valuation: this limit is set by the Bank of Spain so normally it isn’t possible to borrow more.

Spanish banks lend only on the basis of a mortgage valuation: this is not the same as a market valuation and is carried out as prescribed by Spanish law. The recorded transaction values of at least six similar properties sold in the area in the preceding six months are taken, with the valuer deriving an average price per square metre from these figures. This number is then multiplied by the size of the property you are purchasing to arrive at your valuation.

The nota simple, an abbreviated form of the escritura de compraventa – the official document recording the transfer of ownership from the vendor to you - is provided by your legal representative or the land registry. This document may be required before a valuation can be carried out.

Legal issues

Remember: don’t sign anything until you have taken independent legal advice and don’t put down a deposit before ensuring that it is refundable. You should also check what legal costs and government taxes you are liable for before committing yourself to a purchase or remortgage.

Completion

In order to complete you and the seller need to sign the escritura de compraventa in front of the notary and ownership of the property passes to you. A power of attorney may be used to sign on your behalf.

Applying for a mortgage

It is advisable to arrange a mortgage in principle before committing to a purchase.
I hope this information has been of help to you and please bear in mind that the exchange rate can come back and bite you.

Cheltenham & Gloucester Remortgage offer

Cheltenham & Gloucester is launching a new mortgage range offering highly competitive fixed rate deals, fee-free remortgages

The new range, available through intermediaries and branches of C&G and Lloyds TSB, includes a two-year loan fixed at 4.45 per cent and a three-year loan fixed at 4.69 per cent.

Both are available to customers borrowing at least £75,000 (the previous ‘best rate’ minimum was £100,000) up to 90 per cent LTV.

Cheltenham & Gloucester will be offering an entirely fee-free remortgage-only product. The remortgage-only loan is fixed for two years at 4.95 per cent (up to 90 per cent LTV) and will be available with no hidden fees; Cheltenham & Gloucester will be offering this remortgage deal starting this week.

Remortgage Woolwich News

• Two-year fixed rate of 4.79% until 31 March 2008 thereafter reverting to Barclays Bank Base Rate, which is variable, currently 4.50% + 0.95% = 5.45%. The overall cost for comparison is 5.5% APR.
  Offers a non-disclosed valuation and either no fees for legal services or £200 cashback.
  Application fee £445

• Early repayment charge of 3% of the balance repaid plus an extra £300 if the mortgage is repaid in whole, part or transferred to another scheme before 31 March 2008.

• Offset. Barclays Bank Base Rate, which is variable, currently 4.50% + 0.59% = 5.09% for the term of the mortgage. The overall cost for comparison is 5.3% APR.
  Offers a non-disclosed valuation and either no fees for legal services or £200 cashback.
  Application fee £445

• Early repayment charge: £300 for 2 years.

Woolwich remortgage info

Fixed rate remortgage

Abbey is offering reduced rates on their two year fixed rate mortgage allowing the public to remortgage.

Lal Tawney, Abbey's head of mortgage marketing, said: "For people that want to remortgage to Abbey, our two-year fixed rate has been slashed by 0.35 per cent to 4.74 per cent."

He added: "We have also taken this opportunity to trim some of our tracker rates, which were already some of the best rates in the market, to make them even more competitive."

A 0.1 per cent reduction will apply to a two-year tracker at 75 per cent loan-to-value and to five-year fixed rates.

Abbey is offering as part of this deal

• Free valuation
• Free legal fees

Abbey info

Charcol's remortgage deal for your big money pad

For borrowers with mortgages between £300,000 and £2 million, John Charcol has launched a market-leading remortgage deal. The 2 year tracker has a free valuation and free legals and is available up to 90% loan-to-value.

Ray Boulger, senior technical manager at John Charcol, comments: "For borrowers with a loan size of more than £300,000 this mortgage offers great value. In fact, someone with a loan this size would save almost £500 a month if they remortgaged away from a typical lender’s standard variable rate. The product does have a slightly above average arrangement fee of £699, but this is reflected in the very competitive interest rate. And, for borrowers with larger loans, the cost of arrangement will soon be recouped in the savings that they can make each month."

Key Features

Remortgage only
BBR -0.05% to 31/03/08. Pay rate of 4.45%, 6.3% APR
Maximum of 90% LTV
Loan sizes of between £300,000 and £2 million
£699 arrangement fee
Free valuation and free legals
Ability to repay 10% pa Early Repayment Charge (ERC) free
Collar may apply @2.95% if Base Rate falls below 3%

Boulger concludes, "With the addition of a free valuation and free legals, and the ability to repay up to 10% pa ERC free, this really is a great deal for borrowers who don’t want a fixed rate and need at least £300,000."

http://mortgages.charcolonline.co.uk/mortgages/bestbuys/buy-to-let.aspx?type=tracker

Info from easier

Leeds remortgage package

Leeds Building Society has launched a new Base Rate Tracker (BRT) mortgage at only 0.14 per cent above Bank of England base rate.

The product, which is currently 4.64 per cent, also allows 10 per cent capital repayments each year and there is no higher lending fee.

The UK's eighth largest society has successfully introduced a policy of offering two versions of its products, where customers can select a fee-free version or choose to pay fees in exchange for a lower rate. With the Society already offering a fee-free BRT mortgage at Bank of England base rate plus 0.44 per cent, this new mortgage compliments the existing range and enhances customer choice.

Karen Wint, Head of Marketing & PR said, "Our policy of offering two versions of our products has proved extremely popular. The fee-free versions will appeal to customers with a smaller mortgage or who require help with fees. Where customers have a larger mortgage, then it will be beneficial to look for the version with the lowest rate and pay a fee.

"It is important that our customers take the right mortgage to suit their needs and offering a fee-free version of all our products ensures that, whatever the individual circumstances, customers get the right product."

Leeds Building Society has also launched a new shared ownership mortgage. The product has been designed specifically to help first time buyers and has a 1.50 per cent discount for 3 years, no higher lending charge and 100 per cent of the borrowers share available. Customers looking to remortgage will also benefit from free in-house legal services.

info from easier

Leeds remortgage package

Leeds Building Society is launching a new fixed rate mortgage in light of new research which has revealed that fixed rate mortgages accounted for over half of all loans in August this year.

Leeds two-year fixed rate mortgage offers a competitive rate of only 4.75 per cent and capital repayments are allowed at any time without penalty.

Product development manager, Stuart Fearn, said, "We are now offering a two-year fixed rate until 31st December 2007 at only 4.75 per cent, which will prove extremely attractive to customers looking to remortgage or purchase.

"There is no higher lending charge up to 90 per cent loan to value and the product is fully portable, so if customers do wish to move within the two years, they can take this deal with them."

There is also a two-year fee free version of the new mortgage with a rate of 5.25 per cent.

The product has no higher lending charge up to 90 per cent of the value of the property and offers a free valuation worth £335, unlimited penalty-free capital payments and in-house legal services for mortgage holders.

The survey, conducted by the Council of Mortgage Lenders (CML) found that 54 per cent of all borrowing in August consisted of fixed rate mortgages, the highest level since the survey began in 1998.

CML said: "'This probably reflects borrowers taking advantage of lower interest rates and remortgaging into cheaper deals, especially as a large number of people will have been coming to the end of their previous deals."

Remortgage info from fairinvestment

Remortgage Tips homepage

Cheap remortgage deals read the small print

THE cheapest two-year fixed-rate mortgages in more than a year were launched last week, heading straight to the top of the 'best-buy' tables. But borrowers should not be dazzled by the headline rates and assess all-round value when picking a new loan.

WATCH OUT: High upfront and valuation fees can make low-rate deals less competitive for small mortgages

High upfront and valuation fees can make them less competitive for smaller mortgages.

Portman and Lambeth building societies have launched the deals, both set at 4.15%. They are for borrowers who have a 20% deposit, but Portman's loan charges a £499 set-up fee, while Lambeth's is £440.

Neither deal offers help towards legal or valuation costs for those remortgaging, which can be in excess of £500.

Ian Giles at broker Purely Mortgages in central London says: 'Borrowers-with average-sized mortgages of about £120,000 would save £200 over two years with a 4.28% fix with Alliance & Leicester or Halifax's 4.29% two-year fix, available through brokers. This is because both offer free legal and valuation deals.'

Giles says larger providers, such as Halifax, should be able to process a remortgage much more quickly than Portman or Lambeth, meaning customers avoid having to pay expensive standard variable rates while waiting for the remortgage to go through.

However, A&L has a £295 exit fee if customers remortgage to another lender after two years. The average fee is between £100 and £200.

remortgage info from thisismoney