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Remortgage advice

Remortgage advice

Pete Mugleston

To find out exactly what your eligible for and at what rates please or give us a call on 0800 304 7880.

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%.

Borrowing purpose:

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
Debt consolidation 80% 90%
Home improvements 80% 90%
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.

Speak to an advisor

Speak to our team for friendly and competitive finance advice.

0800 304 7880
Call our advisors
Monday - Thursday 9am - 6pm, Friday 9am - 5pm, Saturday 9am - 5pm

Answer our quick survey and our team
will find you the best mortgage deals

We can call you back
at a convenient time

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