Common Remortgage Terms to Learn
Below are some remortgage terms that are important to learn when you are searching for a remortgage. By becoming familiar with these terms or definitions you will be better prepared to talk to a lender about a remortgage and will better understand any information they may provide. While looking around at this site as well as others, you may find it helpful to bookmark this page for future reference. Many of these topics have more detailed information provided within our guide section that you may find helpful.
Remortgage Quote Generator
A remortgage quote generator can often be found on the Web site of a remortgage information site, lender, provider, or broker. This quote generator will offer a sample report as to what one can expect as far as rates offered, the level of lending offered, and possible monthly mortgage payments that will result should one get a remortgage. These quotes are often offered free of charge with no obligation to make a deal with the site offering the quote. It is purely a convenience and information gathering tool provided for the potential remortgage borrower.
What is a stamp duty?
A stamp duty is the amount of tax the government applies to the purchase of a property. A stamp duty is not paid on a remortgage, it is only applicable to be charged on a newly purchased property.
What is equity?
Equity is the amount of the property you own in a monetary value. In simple terms the equity is the asset you have in the property you are paying a mortgage on. To determine equity one has to take the value of the property and subtract the amount owed on the property. The difference is the amount of equity in the property. Equity in a property is important because during a remortgage this will be the amount that can be released to a homeowner in a cash equity release remortgage. The amount of equity can also determine the rate available to a homeowner seeking a remortgage. There are instances when the amount owed on a property will be more than the value of the property. This is a negative amount and will be referred to as negative equity. A homeowner with negative equity will not be able to secure a remortgage.
What are surveys and valuations?
The terms survey and valuation can be interchanged and mean the same thing. A survey is used to determine the state of a property or house to determine its value. The value of the home will then be used to determine the amount of lending that is available on the property.
What is a conveyancer?
A conveyancer is a lawyer that has expertise in property law. Conveyancing is the process of legally transferring a property’s ownership from one person to another person or business. Transferring of ownership can have difficult legal issues and to protect all persons involved in the business transaction it is important to use a conveyancer to avoid problems.
If you are looking for more information on particular types of remortgages please consult the area in our Guides section entitled “Remortgage Types”. Also browse the other sections of our Remortgage Guides to learn more about the process of getting a remortgage.