When preparing to remortgage, getting your finances in order can be the difference between being accepted by a lender or declined.
The first thing you should be doing is looking for deals 2-4 months before your current mortgage deal is due to finish, so ensure that you talk to one of our expert advisers around this time in order to put yourself in the best position possible.
The second thing you should do is check your credit score before applying for a mortgage.
If you check your credit score first, through one of the main three agencies that lenders use (Experian, Callcredit and Equifax) then you’ll have a good idea as to whether or not you’ll be accepted when applying.
It’s actually worth checking your credit score with all three, to see if there’s anything you can pick up on and improve on before applying.
Once you’ve established your credit score, you should check our ‘how much can you borrow?’ calculator.
Our calculator is easy to use, and just requires a few details before it provides you an illustration of a deal that you could expect to get when it comes to remortgaging.
It’s quick and simple and really is worth doing, so you know how much you can expect to borrow before it comes to the all-important application process.
You should also be aware of any possible fees you could encounter when it comes to remortgaging. Some deals will have early exit fees, or fees for remortgaging during a certain period.
If you can’t afford these fees, it could derail your remortgage application.
Getting your house valued is the next step, as well as finding out how much equity you have in the property. To work out how much loan-to-value (LTV) you will need for your remortgage, divide the amount you still owe on your mortgage by your home’s current value. Multiply that figure by 100 and hat will be your LTV.
Finally, keep an eye on your finances in the lead up to applying, and don’t apply for any credit, avoid heavy spending and stay out of your overdraft.
If you are still unsure on what you should be doing, or how to organise your finances, talk to one of our expert advisers.