Best Remortgage Rate Tips
We all want the best remortgage rate tips.
We think if we go to every remortgage company in town and get them all to compete against each other then we will get the best remortgage deal, well that’s not completely true.
All mortgage companies work off the same interest rates handed down to them by the government, they are a little different from lender to lender based on the fees they charge, but most are very similar.
What is really going to help you get the best remortgage rate tips is your financial situation, credit score and employment history, all of these help you achieve the best remortgage rates available.
Here is the best remortgage rate tips that will help you get the best remortgaging rates available in today’s market.
You must be working at your same place of employment for several years.
Some remortgage lenders like to see at least 5 years, banks like to see that you have stable work history, so the longer you have worked for the same company the better it looks for you.
Low debt to income ratio;
What this means is that you owe very low debts compared to the amount
of income you make.
It is not good to owe as much as you make, living pay check to pay check, you want to keep your debts as low as possible and your income as high as possible, so you have a good debt to income ratio.
Mortgage companies want to see an excellent credit score.
A high 700-800 credit score, with no late payments, no bankruptcies, no collections and no negative marks at all.
A score like this will be a good step toward getting the best remortgage rates available.
You don’t want to have too many credit cards.
If you have a lot of credit cards, even with no balances on them, remortgage companies don’t like that, because you have the potential to charge them all up and then your debt to income ratio will be bad.
So just keep a few credit cards with the balances less than 50%.
The remortgage lender wants to be in a secure position and they want you to have something invested
that you could lose, that is why for the best remortgage rate you will need to put down at least 20%.
A large down payment will also prevent the need for mortgage insurance, which will help keep your loan payment down.
This means money equal to several monthly payments in savings, the remortgage lender is going to want to see about 6 month’s reserves in the bank to qualify you for the best remortgage rates.
Whether your going to remortgage or get a new mortgage, these are some of the best remortgage rate tips to help you get the best remortgage rate.
Now if you are lacking in one of these areas it doesn’t mean that you can’t get a secured loan to purchase a home, you just won’t get the best remortgage rate out there, however you may qualify for a different loan program.
Contact a mortgage company to find out more about best remortgage rate tips for your current situation.