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Tips For Finding CCJ Remortgages

In the article below we will be discussing tips for finding ccj remortgages. If you have a CCJ (county court judgement) against your name then it can work against you when you are trying to get any form of credit or remortgage your home.

You may have a CCJ for unpaid debt of some kind. If you do have one these then it is still possible for you to remortgage your home but you will need some tips to help you achieve your goal.

Firstly you should really seek out professional advice from an independent financial advisor or mortgage broker. These professionals will have access to the market on the offers and options available for your specific situation and the appropriate contacts and advice in helping you.

There are a number of things you can do to help you before you come to having to apply for a remortgage though. If you have any outstanding debt relating to the CCJ then you need to try and pay that debt off as a priority. If this is not possible in your time frame then you need to ensure you have a payment plan in place to prove you can manage your money effectively going forward for lenders.

As the CCJ Remortgage is a type of loan having one and paying it back effectively will go to help repair your credit score. Always ensure you do not bite of more than you can chew and ensure you can manage the payments.

With the inevitable fluctuations in the mortgage interest rates leading to a consistent low level, remortgaging property has become a popular option among many borrowers. Well, why not? Actually, remortgaging helps to decrease interest rates and allow using the increased value of the property for needs that require cash or for other alternative investment options.

There are different remortgage products that are offered today. These remortgaging loans offer different products and they usually fall under any of the following:

Standard Variable Rate Remortgage (SVR): this kind of mortgage has a rate that is based in the Bank of England’s lending rate. As a matter of fact, all mainstream lending companies like banks and other financial companies and institutions set their standard variable rate of 2%. This is above Bank of England’s base lending rate. This would simplify: if the base rate is 5.25% of the lenders SVR is 0.25%. The SVR will then have to follow the rate of the base as it fluctuates up and down. However, a person with a good credit rating has more chances of getting better rates for any type of remortgage he gets.

Discounted Variable Rate Remortgage: Like any other mortgage lender, one usually lures a borrower by giving an SVR discount for a specific period of time. This discount is usually in effect between two to five years. But after the period is over, the rate bounces back to the current SVR. Like for an example: if the SVR is 2% above base rate, the borrower can only get about 1.5% or 1.25% worth of discount during the discount period. The rate would automatically fluctuate with the base rate but the borrower will have to pay lesser than the SVR during the set period.

Fixed Rate Remortgage: this is a particular type of mortgage where the interest rates remain fixed for ea period of time that has been agreed upon before reverting the SVR. This particular period often ranges between 1 to 5 years but could be longer depending on the mortgage deal that was chosen. The advantage of this kind of mortgage is that a borrower knows the exact amount he needs to pay for the loan repayment. Every month, the borrower repays without the threat of surprises that usually happen in many mortgage types. But there is a downside with this type of mortgage because interest rate increases as the market rates go down. In addition to this, early redemption could mean higher financial penalty.

Caped Rate Mortgage: this one carries a relatively higher rate and it is saddled with a one-time administration fee. Capping means lenders give cushions to the borrowers against rising interest rates.

Flexible Remortgage: this will allow the borrower to adjust repayments according to circumstances. A borrower may pay more in advance if he has extra money.

Hopefully this article has give you some tips for finding a ccj remortgage and will enable you to take some actions of how to get the remortgage you need.