Conveyancers and remortgage solicitors from the CMS panel

Tracker

A tracker mortgage tracks a stipulated bank base rate and usually guarantees not to rise beyond a certain percentage above the bank base rate. This means that your mortgage can go up or down depending on what the base rate does. You have the benefit of paying less if the mortgage rates go down but you will pay more if they go up.

Interest only mortgages

If you are trying to keep your monthly costs down you may opt to pay only the interest on your remortgage. This means that at the end of the remortgage you will still owe the amount you borrowed ‘the Capital’. Most lenders will insist that you take out a ‘repayment vehicle’ i.e. an insurance policy, pension etc. to repay the remortgage at the end of the term.

Capital repayment mortgages

With a capital repayment remortgage you pay the interest plus part of the loan off each month. In the early years it is mostly the interest which is paid but over the life of the remortgage you gradually reduce the loan until it is all paid off at the end of the term.

Self-Certified Mortgages

With a self-certified remortgage the lender trusts you to certify how much income you earn. This can be beneficial to self-employed people or people whose income cannot be certified in the usual way. Few lenders now offer these types of remortgages and they usually cost far more in interest than a standard mortgage.

Equity release

This type of remortgage was set up so that home owners could release equity from their properties in order to raise funds to supplement their income, pay for home improvements or residential care etc. The idea is that the funds are advanced by the lender and the money is re-paid from the proceeds of sale of the property once the home-owner has passed on. The home owner needs specialised advice on this type of mortgage and CMS can provide a quotation for this. Please call us on 0845 060 33 55 for a quote.