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Remortgage FAQs

Establishing whether remortgaging is a good idea means considering your requirements, your objectives and your budget. In some instances, refinancing with a new lender at a lower rate of interest can significantly reduce both monthly outgoings and the overall balance of an existing mortgage. In which case, remortgaging is definitely a good idea. If you are looking to raise funds for a major investment or home improvement project, it is a case of assessing affordability and considering your budget. If you can comfortably afford the repayments with no negative implications for your lifestyle, there is no reason not to go ahead. By contrast, refinancing is inadvisable where the borrower has any doubt whatsoever regarding their ability to comfortably meet their subsequent repayment obligations. If you are already struggling to pay your bills and stay on top of your finances, you should not be considering refinancing for the time being at least.
The key to finding the best remortgage rates and deals on the market lies in comparing as many refinance offers as possible from an extensive panel of lenders. Rather than limiting yourself to the usual High Street names, it is essential to include independent remortgage specialists in your search. As many ‘not on the High Street’ lenders operate exclusively via brokers, you will benefit from independent support throughout the process. Our exclusive remortgage calculator goes beyond the usual High Street names to include dozens of dynamic re-finance specialists across the UK. Even with a typical mortgage comparison site, you may not gain access to the most competitive deals on the market – use our remortgage calculator today to see how much you could save.
Even the most sophisticated remortgage calculators on the web are designed to provide a basic indication of the options available. As there are dozens of important factors to take into account when calculating and issuing home loans, the information provided by an online remortgage calculator cannot be guaranteed 100% accurate. Instead, calculators like these should be used to gain an overall idea of the affordability of a typical refinance. After which, an obligation-free consultation should be organised with a broker to discuss your requirements and the available options in more detail.
Remortgage affordability is largely identical to standard mortgage affordability. Measuring ‘affordability’ of any home loan means establishing whether or not you can comfortably afford the subsequent monthly repayments, while maintaining your current lifestyle and covering your most important costs. In some instances, refinancing a property means increasing subsequent monthly repayments to cover the additional debt. In others, it is simply a case of extending the life of the mortgage without affecting monthly repayments. It is also possible to switch to a more competitive deal by refinancing, which provides the opportunity to reduce monthly outgoings and free up additional cash. Your mortgage broker will help you assess your current financial position and the affordability of any refinance deal you may be considering. An independent broker can also negotiate with lenders on your behalf, helping you access an unbeatable deal with the lowest possible overall borrowing costs.
The key to finding the best remortgage rates and deals on the market lies in comparing as many refinance offers as possible from an extensive panel of lenders. Rather than limiting yourself to the usual High Street names, it is essential to include independent remortgage specialists in your search. As many ‘not on the High Street’ lenders operate exclusively via brokers, you will benefit from independent support throughout the process. Our exclusive remortgage calculator goes beyond the usual High Street names to include dozens of dynamic re-finance specialists across the UK. Even with a typical mortgage comparison site, you may not gain access to the most competitive deals on the market – use our remortgage calculator today to see how much you could save.
This will depend on what has caused a poor credit score. You or a broker would need to check your credit report and if the poor credit is not due to missed payments or is from a while back, it is possible that the lender will ignore it or they may be able to offer you a slightly higher priced product.
This will depend on whether the poor or bad credit is due to mortgage arrears or any other adverse/bad credit. If it is due to mortgage arrears and they are in the last 3 months you will need a legitimate, easily explainable reason and there to be no other or minimal history of arrears in the past. If there are missed payments on the mortgage within 6-12 months there are lenders out there who will consider lending. If the bad credit is a result of missed payments on other type of credit again depending on when the arrears happened and how much the arrears amount to, they can be ignored. If one is looking to remortgage as they are at eviction stage, you might be able to access alternative finance options such as bridging loans.
If it is due to mortgage arrears and they are in the last 3 months you will be unable to refinance unless there is a legitimate, easily explainable reason and there is no other history of arrears. If there are missed payments on the mortgage within 6-12 months there are lenders out there who will consider lending. If the bad credit is a result of missed payments on other type of credit again depending on when the arrears happened and how much the arrears amount to, they can be ignored. If one is looking to remortgage as they are at eviction stage, you might be able to access alternative finance options such as bridging loans. It best to contact a mortgage broker who has a range of lender on their panel and will be able to find you a lender based on your level of adverse.
Last Updated: Nov 18, 2020 @ 2:42 pm
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