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7 Top Tips to Remortgaging in 2018 – Part 2

After the initial period on your mortgage expires, the smartest thing to do is to remortgage in order to save money on monthly payments. It is possible that remaining with your same lender under the standard variable rate will provide the lowest repayment, but it is far more likely that shopping around for different terms from another provider will net you a better deal.

This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

If you missed our Part 1, in this 2-part series about remortgaging, you can catch up on Tips 1-4 here. 

Or read on for Tips 5-7.

(5) Improve your odds with lenders

These days, lenders primarily care about affordability when choosing who to offer mortgages to. The good news is there are many ways to make yourself look more desirable. Lenders look at your income compared to what you spend (including bills and other debts) so make sure ‘your house is in order’!

The first step in improving your chances of getting a good deal is to ensure your credit score is top-notch. This entails:

  • Getting on the electoral roll
  • Checking your credit file
  • Confirming addresses on your file
  • Severing all ties officially from exes
  • Building/rebuilding your score
  • Making sure any past indiscretions have come off your file
  • Keeping up with your payments
  • Limiting the enquiries around the time you’re applying for a remortgage
  • Don’t take cash out from a credit card
  • Fixing any errors before moving forward

Once you’re sure your credit score is in great shape, you should move on to demonstrating your affordability. Many things go into proving to the bank you’re a reliable borrower:

  • Work with a broker
  • Provide proof of income
  • Make sure your bank statements are free of any red flags
  • Know your financial situation inside and out
  • Understand how much disposable income you have
  • Tighten your purse strings
  • Make sure you can pass the new “stress test” – a mortgage as high as 7%

There are some other things you can do to make yourself more attractive to lenders. Lower the amount you need to borrow as much as possible, and dig into your savings to increase the chances of your mortgage being accepted at a better rate.

Not using your overdraft for at least 3 months before you plan to remortgage, avoiding payday loans, and closing unused credit cards are other easy ways to boost your chances.

(6) Overcome self-employed complications

Many doctors and dentists are self-employed, so it might be tough to prove your income during the affordability stress test, especially if you only recently started your business.

Handing over two to three years of your accounts in the form of business accounts or tax returns will help.

This is an excellent situation to employ a mortgage broker since it can get quite complicated.

(7) Looking to the future – choose the right mortgage for you

Just as you took the time to learn about your existing mortgage, you’ll need to do some more research to figure out what kind of loan you want moving forward. There are so many choices for fixed vs variable rate mortgages, each with their own set of advantages and disadvantages. Do you want flexibility?

How long a term are you looking for? What kind of fees are tied to the mortgage? There are a lot of variables to keep in mind, so working with a professional will help reduce some of the confusion over the course of your remortgaging journey.

The remortgaging process from start to finish can sometimes take more than three months, so be sure to start well ahead of the end of your existing loan.

To expedite the process and ensure you get your money’s worth, engage a mortgage specialist who will make certain you review all available deals and help you choose the right mortgage for you.

Need help to secure a low-cost mortgage?
Mortgages | Buy to Let | Property | Mortgage Planning |

Dental & Medical Financial Services have been helping doctors and dentists with finding low-cost mortgages for your home and investment properties for over 25 years. Call Chris to discuss your options.

Tel: 01403 780 770


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