Self Cert Remortgage Costs
Self Cert Remortgage Costs - What You Really Have To Pay
To make sure of a cheaper deal and lower self cert remortgage costs, you will need collateral. Lenders need security now, so having at least 25% of the value of your home is vital. Anything less than this will incur much higher rates and fees to compensate for the lender's risk. And obviously, the more equity you have in your home, the lower the rate. Those without equity will be facing much higher self cert remortgage costs. If you cannot find around 25% of your home's worth, then be ready for rejection.
With the average house price at around £147,746*, this means you will need to be able to put down nearly £37,000 to be sure of securing any self cert remortgages. But if you had equity in your home from your previous mortgage you could well have this amount sitting there as bricks and mortar. But you have to act quickly - not only are self cert remortgages dwindling, but house prices have fallen by more than 17% in a year* and could well keep falling - which means your equity will decrease also.
Unfortunately, that's not the only cost. As well as a higher rate and more equity, self cert remortgage costs also include arrangement fees. These are the costs of setting up the mortgage and start from at least 1% of the house's value. Like anything, the more you pay, the smaller the monthly rate, so paying more than 2% on an arrangement fee will go towards a good rate. This cost will be there if you remortgage with an existing lender, or move providers. But moving will incur more self cert remortgage costs in the form of exit fee charges of anything up to £275.
And there is even more self cert remortgage costs to meet - a remortgage means another valuation. This expense is all dependant on the value of the home, but will start from around £300. Add to these self cert remortgage costs the legal fees from £250 and you have quite a large bill to meet if you want a good remortgage deal.
Rates are still high for self cert right now. Of course, more equity means a lower rate, as does a good credit score and a solid income. Self cert remortgage costs are based around risk - the less confident a lender is that you can meet repayments, the more they will demand of you. So make sure your finances are in order and make sure your credit score is checked and double-checked before going for a remortgage.
Self cert remortgage costs can be cut with sensible planning, good financial housekeeping and foresight. These figures might not be easy reading for someone who is self employed or has more than one job, but self cert remortgage costs are a reality and need to be met if you want to find the right mortgage for you.
* Nationwide House Price Index, 26/02/09
