Published 16th August 2017
When you’re remortgaging, advice is important and often underused by many borrowers. It’s a sad fact that we have to hop between providers of, well, anything these days in order to get the best deal - mortgages and insurances are no exception. Although millions of homeowners benefit by switching lenders at the end of their initial rate periods, stats for 2017 show that a large number of people still return to their bank to renew their rates without considering their options, even with the prospect of massive savings.
Why? Many would say it’s due to the amount of perceived effort involved in a mortgage switch, and lack of consumer trust in moving lenders, along with the changes and tightening of lender criteria that has seen so many customers trapped with lenders that once approved them where others now won’t. But, the market is changing. As lending criteria relaxes and best rates continue to break records, the benefits to changing mortgage provider have never been so attractive. AND with state of the art mortgage systems, automated valuations and streamlined legal services, remortgaging has never been easier.
Many of the people who enquiry with us could qualify for free remortgage advice, uk wide, and we have helped hundreds of people by putting them in touch with a mortgage broker who can put them onto better rates, raise money, switch to buy to let, and do all sorts of things with their mortgage to suit their preference – read our testimonials here.
Remortgage advice below covers these specialist areas...
- Bad credit
- Buy to let
- Self employed
- Retired borrowers
- Borrowing more money
Bad credit remortgage advice
If you have bad credit and are looking to remortgage, specialist lenders are available to help. It hinges on how severe and recent the issues are. If you have loads of CCJs and defaults within the last 2 years, the chances are only one or two lenders will consider you at high rates, if older than 2 years then more will consider an application at lower rates. For more info on what types of bad credit can be acceptable view the bad credit tables.
Thankfully the brokers we work with have access to all the UK lenders, so if there’s a remortgage out there for you, they'll find it.
Buy to let remortgage advice
Remortgaging buy to lets is a similar process to main residential mortgages. Additional considerations are for the affordability model your new lender uses in relation to the rental income, and of course if rental valuations have decreased will the new lender deem the investment viable.
Self employed remortgage advice
The advice of remortgage specialists can be is vital for a lot of self employed borrowers, especially those who have recently set up a business or changed trading styles (i.e. from sole trader to ltd company or vice versa). Lenders are vastly different, some accept 1 years trading history where others require 3 or more, some request full audited accounts where others require tax returns or just a reference from an accountant. Depending on the situation, you may have access to most lenders, or very few – so it’s best to find out what scope you have to make sure you get the best deal.
Help remortgaging when retired
Retired applicants and those nearing retirement can remortgage just as easily as those in employment, but certain lenders will accept different incomes and offer different borrowing levels. How much you can borrow depends on what income you receive, and from where. Uk pensions paid into Uk accounts tend to be accepted by a lot of lenders, but they accept different amounts of each, so one lender may take into account 100% of a state pension, and another may only take 50% - this can have a real impact on the max loan size available.
Occasionally retired people ask us how to get a mortgage with overseas income from pensions and investments, which is also possible despite the fact that most lenders decline to consider it.
Borrowing more money on your mortgage
If you want to take money out of the property, for whatever reason, there's certain things to consider. You will be limited to a particular loan to vale (LTV) for all mortgage products, and you will only ever be able to borrow up to this value. Currently, remortgage LTV limits for standard mortgages are at 90%.
Lenders may lower the LTV limit to fit their criteria, depending on what you are borrowing for. Borrowing for debt consolidation will usually have different limitations on LTV than borrowing for home improvements. Although technically the new loan amount and affordability would be the same regardless of the purpose, lenders interpret the risk in different ways.
|Most lenders||Specialist lenders|
|Mortgage swap (No additional £)||90%||95%|
|Buy furniture, electrical or white goods||80%||90%|
|Buy car, caravan or boat||80%||90%|
|Pay for school fees||80%||90%|
|Pay for medical expenses||80%||90%|
|Other personal consumption||80%||90%|
|Buy final share in shared ownership||90%||90%|
|Buy a self build home||75%||80%|
|Purchase a second home||80%||90%|
|Buy a holiday home||80%||90%|
|Buy freehold or new extended Lease||80%||90%|
|Buy a share in the freehold||80%||90%|
|Buy land to extend security||80%||90%|
|Invest, save, or share purchase||Not usually allowed||90%|
|Invested for business purposes||Not usually allowed||90%|
If you're ready to make an enquiry please fill out our quick form below and a remortgage expert will be in touch ASAP. If you require immediate assistance please call 0800 304 7880.