How to Get Ready for a Remortgage

Are you ready to apply for a new mortgage on your house?

Do you want to replace your current mortgage?

Are you looking to borrow cash against your house?

With a third of all property loans in the United Kingdom being remortgages, do you think it is time you think about getting one? If you do, you need to know how to prepare and get ready for a remortgage. Follow these steps to prepare for a remortgage:

1.      Compare Different Mortgage Rates to Discover the Best Deal

You want to get your hands on the best possible remortgage deal out there. This means searching for remortgage rates fourteen weeks prior to the completion of your planned remortgage date. If time is not your friend, do not worry, just start quickly without any further delays.

Once you come across a mortgage lender, apply for a loan and wait for them to give you an offer. The offer will have an expiry date, lasting anywhere from 30 to 90 days. This gives you enough time to pit different lenders against each other and decide which offer works best for you.

2.      Do Not Earn the Reputation of a Lender Hoarder

You need to apply to different lenders to receive their offer, and then decide—this should be clear to you now. What you should not do is to apply to more than three lenders. Even though you may not tell the lender you are looking at others while you have reserved their rate, your credit file will give it away.

Each time you apply for a lender, the search automatically enters your credit file history. If a lender sees you have applied for several lenders at one time, they will assume you have met with several rejections and it would be a risk to invest in you. Keep it three of less.

3.      Calculating the Approved Remortgage Amount

You can calculate the approved remortgage amount to receive an estimated loan the lender may approve. The lender will multiply your salary by 5X to calculate your remortgage loan to ensure you will be able to repay them.

All lenders calculate the remortgage size differently to fight out how much money they should lend you. They will include your gross income, bonuses, second jobs, commissions, benefits, and any other alternate source of income. Other things they will look at include debt repayments, school fees, food shopping, maintenance payments, groceries, etc.

4.      Select Your Remortgage Date to Evade an Early Repayment Fee

Most lenders charge an early repayment fee for the first incentive period and if you apply for a mortgage during this date, they will charge you many pounds. Check to see if your mortgage company has one and if they do not, you need apply for remortgage the next business day to avoid penalties enforced by them.

If you are planning to remortgage your property, do not delay the process, but start as soon as you can.