Remortgages And Mortgages Past And Present.
Remortgages are the moving of a mortgage from one mortgage lender to another and taking out a remortgage is a common thing, for homeowners to do.
Only homeowners can apply for remortgages as they require to be secured on the asset of a property.
There are various reasons why an individual decides to remortgage.
Until about twenty odd years or so again most people applied for their first mortgage when they were getting married. Very few bought houses before that. They approached mortgage lenders and having chosen one very often stayed faithful to the same mortgage lender throughout their entire stay at that address.
Often when they moved house they remained with the same mortgage lender.
These days many mortgage payers change their mortgage it seems as often as they change their clothes.
Sometime it can simply be a matter of moving from one mortgage lender to another to obtain a better deal, and at other times remortgages are sought to release funds for a whole variety of reasons.
Obtaining a mortgage or a remortgage now is certainly much easier than it used to be.
For example the maximum income multiplier was three times the applicant’s earned income.
In addition many peoples income then as now was made up not only of a basic wage but also of overtime, commission, bonus, etc.
In our mother’s generation only about a quarter of even regular additional income such as bonus was taken into account.
It was often difficult in the past to convince mortgage lenders to consider the woman’s income when a couple applied for a mortgage. They were worried that if she had children that the male would not be able to make the mortgage or remortgage payments.
Now it is very different as regards the income multiplier. Although it varies considerably from one mortgage lender to another the minimum times income is 3.25% while some lenders are prepared up to five times the income.
Some mortgage lenders accept half of all overtime, bonus, commission, etc. and others are even prepared to accept 100% of such additional income.
Nowadays there is no consideration given as to whether the female applicant may give up her job at sometime in the future to start a family.
A reason for this may be that in past generations many women stopped work for life when they had kids, while almost all women stayed at home at least until the youngest child was five years old.
These are obviously at least some reasons why remortgages and mortgage are easier to obtain at present.
For more information remortgages