If you need to remortgage your property, it pays to do some careful preparation and research before signing up for a new deal. Your mortgage is probably the biggest financial commitment you will ever make, so it pays to take some time to make sure that you are getting the most suitable product on the market.
There are several reasons why you might need or want to remortgage. It could simply be that your current fixed rate deal is coming to an end, and you want to avoid being moved onto your lender’s more expensive standard variable rate. You may want to remortgage to consolidate your debts, or to raise funds for home improvements.
In some cases, a mortgage holder may want to upsize to a more expensive property, but their current lender won’t let them borrow any more. Whatever the reasons, it’s important to find out if your current deal has an early repayment charge, because in some cases this may outweigh the benefits of moving.
The next step is to make sure that you can pass your prospective lender’s affordability tests. You will need to prove that you have a steady income and live within your means, without any extravagant spending habits that take you to near your credit limit every month.
Check your credit score to see if there are any issues with your past financial history that need addressing. Sometimes, correcting simple mistakes such as a line in your address, or ensuring that you are on the electoral roll can improve your score.
If you still share any joint accounts or debit agreements with ex-partners or housemates, de-link from them, because any problems caused by them can affect your own credit score. Set up direct debits to ensure that all your bills are paid on time, and deal with any finance agreements that are currently in arrears.
If you have a poor credit history, getting a good remortgage deal will be more difficult. However, in many cases it is still possible, depending on the individual circumstances and severity of the issues. Some specialist lenders will take into account your whole financial picture, rather than simply judge you on past performance.
If you already have a history of defaults or even a County Court Judgement, the lender will want to know if it was a single instance, or if it has happened on multiple occasions. They will also look at how long ago it occurred, how much debt was involved, and what effort, if any, you made to repay the amount owed.
Some types of debt may be judged as less serious than others. For example, a late or missed payment on a mobile phone bill will be considered less of an issue than a default on your mortgage payments.
More serious adverse credit incidents such as bankruptcies, Debt Management Plans, or Individual Voluntary Arrangements will make it more difficult for you to secure a mortgage deal. However it may still be possible with the advice of IVA mortgage specialists.
Your home may be repossessed if you do not keep up with your mortgage repayments.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
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Create Finance Limited is an appointed representative of Mortgage Advice Bureau (Derby) Limited which is authorised and regulated by the Financial Conduct Authority.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
We may receive commission that will vary depending on the lender, product or permissible factors, The nature of any commission model will be confirmed to you before you proceed. Create Finance Ltd are a credit broker, not a lender.