Reducing your LTV band
An LTV band, or loan-to-value band, is the ratio of the amount still to be paid off on the mortgage. Its typically expressed as a percentage of the amount left to pay on the mortgage. The lower this percentage is, the less you are essentially borrowing and therefore the cheaper your remortgage could be. By comparison, if you borrow a lot more, closer to 80% or 90%, you are borrowing more from the bank or mortgage provider and therefore this is reflected in a higher rate.
The rates of LTV are listed below:
- 60%
- 65%
- 70%
- 75%
- 80%
- 85%
- 90%
- 95%
Compare different mortgage deals
Comparing the different rates on remortgage plans is an incredibly useful way to help ensure you get the best possible
remortgage deals
. As previously mentioned, fixed rate and tracker mortgages are two of the best ways you could save money on your mortgage.
Fixed rates mean that the cost of your mortgage remains fixed through the loan term and therefore the amount that you pay each month does not change. This is useful for those homeowners and
landlord mortgages
who are looking for certainty in their monthly repayments or the rent that they charge, and they have peace of mind knowing that it will not be affected by market fluctuations.
Tracker mortgages are tracked in line with the Bank of England base rate and depending on the market conditions, you could pay less than other mortgage rates.
However, fixed and tracker deals only typically last a few years (2 to 5 to be more exact), and it will typically mean lenders will move you onto the SVR after this deal is up.
How much does remortgaging cost?
The cost of a remortgage will depend on various different aspects linked to your current financial situation and specific mortgage repayment plan.
Your remortgaging cost will vary based on:
- Your income
- Your credit score
- How much outstanding debt you have
- How much equity you have in your home
- How much you need to borrow in terms of LTV
-
Current deals available including
Bank of England base rate
However, with so many different mortgage brokers, lenders, banks and specialist finance companies available, using a comparison site like Remortgage Quotes Online can be an effective way to compare the different deals and options available and find the best one for you.