It is advisable to start the remortgage process 3-6 months before your current deal ends to avoid automatically being placed on your lender’s standard variable rate (SVR). SVR is the interest rate that is charged once an initial/fixed period comes to an end, monthly payments could change each month depending on the rate.
Firstly, you should check your credit score as the lenders will do this as part of your application and it is a good idea to check this beforehand to get an idea of any potential issues. You can see if there are any changes that you could make to improve your score before applying. Having a good credit score will enable you to access the best advertised rates from lenders.
If possible, hold off applying for any credit just before your mortgage application
Get an estimate of your property’s value – you can either use online tools such as Zoopla or contact your local estate agent to get a valuation. We work with various estate agents in Manchester and Cheshire that offer free valuations.
Collect your required paperwork in advance. You will usually need to provide your last 3 months’ bank statements and payslips as a minimum or 3 years accounts/tax returns if you are self employed. You will also need proof of your current address such as utility bill or council tax bill and photo ID such as passport.
Consider your income and outgoings and think about what you can afford in terms of repayments. You need to ensure you don’t overstretch yourself. Consider the long term impact of these repayments. You might be hoping that an increase in the value of your property will balance out the additional borrowing but please remember that property prices can also fall and potentially leave you in negative equity. It is important to consider whether your finance or lifestyle factors have changed since you initially took out the mortgage.
Compare rates – There are various mortgage calculators available online which will help you to do this. You could also instruct a mortgage adviser or mortgage broker to assist you as they will have access to a range of products across the market with various different lenders.
