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| *Ostroff, Fair and Company>>>Renting & Real Estate |
How does a remortgage work? |
if you get a 100% mortgage on a flat for 75k and then remortgage it after the first 3 years, after which it is worth 90k for example, does the remortgage make it less then a 100% mortgage? If you buy a residence for 75k and are at 100%, and then 3 years later you refinance/remortgage your mortgage loan then it will depend on how much you remortgage the home for to determine whether it is a 100% mortgage still. If your home is worth 90k when you remortgage your home and you remortgage it for 90k, then yes you will have a 100% mortgage once again. If you refinance/remortgage the home for less than 90k, then you will have some equity in the home and the mortgage will not be 100%. Usually lenders consider anything between 95.01% and 100% in the same classification as a 100% mortgage loan. HOope that answers your questions Source(s): http://www.gofirstsecurity.com/searchres... (couple of links about remortgage) lucky you - you have equity in your property. remember you should only be financing the outstanding amount ...not the equity. go to your local banker and sit down ans ask him the questions...you are under no obligation...you are just seeking advice. and---also stay away from the online internet people who will email you stating they can assist you or give you a great deal...they can't!...stick with your local bankers good luck 40+ years experience |
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