Variable Rate Remortgage

As interest rates remain low, a Variable Rate Remortgage could be the right remortgage product for you. If you have found the perfect home but need reassurance regarding which remortgage product to select then researching for this particular type of remortgage is very simple. As the market for variable rate remortgages have increased, the competition has therefore grown and the amount of deals to choose from has increased rapidly.

A variable rate remortgage is simply a loan that is issued by a lender that is secured against a form of your property. The variable rate related to the interest rate that the lender uses to charge you interest. This part is calculated using the Bank of England base rate. The base rate is currently at one of the lowest points it’s ever been and therefore variable rates that are set by lenders are also at their lowest. This is due to lenders having to set their rates around the Bank of England rates.

As variable rate remortgages tend to have lower interest rates, it has made them a popular choice in more recent times; however, the downside is that the remortgage rate can be changed at any time. If the Bank of England decided to increase their base rate at any time, the variable remortgage rate would also rise. Therefore, although you will typically be paying less for your remortgage, if the rates were to increase, your monthly remortgage repayments would also increase due to the fluctuation of interest rates. However, the advantage is that if there was a reduction in the base rate, the variable remortgage rate would decrease which in turn would reduce your monthly remortgage repayments.

When you have found the property that you wish to purchase, it is often best to do some research regarding the variable rate remortgage available to you. With the introduction of online banking, banks are competing against each other through the internet as well as on the high street. There are also specialist loan companies that have been set up through the internet who are also targeting the remortgage market with their own products on offer.

If the amount of information available seems daunting and you are unsure of where to start researching it’s often worth checking with a financial advisor first. You can use the advisor that can be found in your local banks branch. They will be able to discuss all the relevant details and provide a further insight into the finer details of this type of remortgage. If you are experienced in the remortgage market or just know exactly what you are looking for, online applications are very welcome from lenders, which not only saves you and the lender time but you will usually be given an immediate response with regards to acceptance.

When applying for a variable rate remortgage, you may be eligible to borrow 90 to 95% of your homes value depending on lender and which product you have chosen. Your application will be based on your income of which if you are a sole applicant, you can potentially borrow 3.5 times your salary or more depending on lender. If you are applying in joint names, the lender could potentially loan you either 3 times your joint income or more depending on lender.

All remortgage applications will be based on your credit history. All financial institutions perform mandatory credit checks on people applying for remortgages. This provides the lender with the ability to assess the risk to them when lending you the money to secure the remortgage. They will look at personal details such as monthly outgoings, employment history and any outstanding debt you may have.

There is often no redemption penalties associated with variable rate remortgages, if you move and want to remortgage to another lender or if you repay your remortgage earlier than the set term, you will not be charged for doing so. This is a real advantage as many other types of remortgage product will impose strict penalties for repaying the remortgage earlier than the agreed term.

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Would you like to know more?

The Basics  |  Flexible Remortgages  |  Cash Back Remortgages  |  Tracker Remortgages
Variable Rate Remortgages  |  Capped Rate Remortgages  |  Fixed Rate Remortgages  |  Discount Remortgages
Cheap Remortgages  |  Cost-Fee Remortgages  |  Remortgaging Tips

Useful Financial Links

Please find below some links that you may find useful from JST Financial. These links are to external sites and will open in a new window.

	Consumer Direct from The Office of Fair Trading carries extensive Loans information, covering everything from Unsecured Loans to Right to Buy Mortgages.
	MoneyMadeClear (The Financial Services Authority) offers a great, free to use Loans Calculator.
	Trading Standards offer advice on taking out a loan and what your rights are.

If you know of any other links that you believe may be of use to our visitors, please contact us.