Remortgages

The first and the foremost step to have a good start for the remortgage process is to know what you owe.

You get the ideas of your outstanding debt from the mortgage statement that you receive from your lender every month. The outstanding debt figures give you a precise idea of what your remortgage would look like.

Further, you should get an accurate idea of your property value. If the value of the property has increased, it would play a vital role when you apply for a remortgage and provide you with the most benefits. But if the price has fallen than the mortgage it would become hard to get the remortgage.

Now that you know what you owe and what is the current market value of the property, the next step is to find the best remortgage deal.

The sole objective of remortgaging is to get the benefit of the best mortgage rates and lower interest rates. To make sure that this purpose is served, all you would need is to find the mortgage option that is the best fit for your needs as well as assures financial benefits.

One of the effective uses of the remortgage is to get cash of the property value. This would allow you not only to pay off the debt you won but also to provide access to excess funds that you can utilize for even home renovations and more as it is tax-free. All you need to take care of is spending to keep off from paying the interest of the loans you did not need in the first place.

One of the biggest mistakes that people make is rushing when taking the remortgage. What if your current mortgage has an early repayment charge if you wish to exit early which eventually gets lowered upon the expiration of the deal. In such a case, it is better to wait before you apply for a remortgage. As it would not make any significant saving difference.

Does this mean that you have to wait until the expiration of the current mortgage? Not at all, all you need to do is to ask the lender to lock in the remortgage rate for a period. This has proved to be incredibly helpful when the price is going to rise in the near future.

Now when you are sure of the exact time that has arrived when you would want to apply for a remortgage, the next and important aspect that you need to take into consideration is mortgage rates. All the finance products have various fees associated with them which also includes the fees of the broker. Before finalising the mortgage option make sure to have a look at the rates to make the right decision.

Apart from the skills and knowledge, the professionals gave a better reach and network in the market. They are well aware of all the updates and best possible deals for the mortgage.

After that, the first person that may come to your mind for advice is your current lender. Well, they are also qualified and skilled but there is a chance they may be promoting the products of the associate bank or finance society. In such a case, you would miss out on the chance to get the best deal in the market.

Other than the specialised broker you can also get the best deals and advice online. Brokers at Platinum Mortgages can surely provide you with the benefit from their in-depth insight and market experience. There are also various comparison tools available to get the best possible mortgage rates.

The scenario changed incredibly after 2014 for the application of the fill out a mortgage application with the introduction of the Mortgage Market Review. As an impact of this review the lender has become strict. They have raised the bar of affordability assessment and stress tenting.

If you are among the ones who have been through bad financial circumstances recently. It becomes even harder for you to prove the income.

Despite the complication, the process can become easier for you if you are well organised. you should be prepared with the following:

• Three months bank statement and payslips for the idea regarding your income.
• The latest mortgage statement is provided by your current lender.
• Identification documents.
• Make sure there are no anomalies in the credit report that may become a hurdle in the application.

The lender would want to know the value of the property to verify whether the loan-to-value fits the lending criteria and conduct stress testing to make sure that you can withstand the hike of the remortgage.

You must be ready to face the wide spectrum of questions from personal things to relevant ones. Which is to know if you are capable of affording the remortgage. The process becomes simple when the mortgage broker conducts a full-fledged interview and then provides all the information to the lenders instead of you providing the information to the lenders one after the other.

To increase the chances of application approval, make sure that there is no evidence of multiple applications in a short time span, which would eventually be reflected in the credit report.

Further, you will have to provide the starting date of the remortgage. You cannot provide any data, you would have to look for the date of ERCs expiration and on the conveyancing process.

Indeed the process is complicated and time-consuming, it may take up to more than two months if your case is complicated. Having a reliable mortgage broker by your side would surely make the process more simplified and speedy.