Frequently asked questions
Why should I remortgage?
Remortgaging is where a mortgage is repaid and moved to a new lender without the borrower moving house. It is usually done to save money by taking advantage of fresh deals and cheaper rates.
Some may remortgage to raise money by releasing equity in their home. People often use money raised through Remortgaging for home improvements, like extensions and renovations, increasing the property value as a result.
How do I get the best deals?
There are a number of things you can do so make sure you get the best deal for you, including checking and trying to improve your credit rating where possible. It’s impossible to undo past mistakes but it can help to make sure you cancel things such as unused cards, accounts and contracts to boost your rating. Check your credit file thoroughly, show that you have a stable lifestyle – for example, are employed rather than self-employed – and make sure you are on the electoral role to make yourself look more attractive to lenders.
You can also help yourself get a better mortgage rate if you have saved for a large deposit; in general, the larger the deposit the cheaper the rate. When looking at deals don’t be tempted to focus too much on initial cheap rates. It is important to look out for hidden fees and charges that may also come along with attractive interest rates.
Although it is important to think carefully before applying for a mortgage, don’t put it off once you have found the mortgage product which best suits you or you could risk disappointment.
What does ‘’whole of market’’ mean?
The term ‘’whole of market’’ refers to all the mortgage deals available in the UK. Any broker who describes themselves as such should have access to the whole marketplace and all of the extensive deals available in order to compare products and recommend the most suitable for you.
How much can I borrow?
The amount you are allowed to borrow will depend on a number of factors, for example, whether or not you are the sole buyer and how much your income is. Help get a better idea by entering your details into our mortgage calculator.
Is a valuation required?
A property valuation is usually required for any financial products secured against a property, including mortgages, remortgages, secured loans and equity release plans. This is generally so the lender can be sure that they can get the loan back should the borrower’s repayments fail for any reason.
How long does it take?
Once you have found what you’re looking for it usually takes a few weeks for mortgages and remortgages to finalise. Your adviser should talk you through it and keep you well updated throughout the entire process.
What about if I have a poor credit rating?
Few people have a spotless credit rating and as a result it shouldn’t affect your chances of getting a mortgage too much. It is, however, important to remember that lenders aren’t as relaxed since the credit crunch. There are certain mortgages designed for people with certain types of bad credit scores, but these can have their own problems so it’s best to speak to an adviser to work out what options are available and suitable for you.
What if I am self-employed?
Self-employment is an indication to lenders of a fluctuating income, which is considered a risk factor. Although it could mean higher interest rates there are plenty of mortgages available to self-employed people – providing they can show evidence of their business accounts. Speak to an adviser to see what the best deals available to you are.