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This article was published on June 19th, 2024
Remortgaging allows the owner of a property to switch their existing mortgage to a new deal with either their current lender or an alternative provider. Most property owners will only remortgage when their current contract ends, however there are many other reasons to consider remortgaging your property including:
● Reducing your mortgage interest rate
● Fixing your monthly payments to protect against possible future rate rises
● Raising funds to carry out home improvements
No matter your reason for remortgaging your property, lenders will consider your remortgage application in the same way they consider a mortgage application, meaning they will assess your credit score.
When a lender assesses your credit score, they are essentially determining your creditworthiness and the risk of lending to you. If you have a high credit score, they will feel more confident in lending you money, resulting in better deals. However, even if your credit score is low you shouldn’t be refused a remortgage.
Although your credit score is an important indicator of your financial responsibility, it is not the only thing lenders take into consideration when you submit a remortgage application. Most lenders will take into account your credit history over the last 18 months, meaning if you’re planning on remortgaging, you have the opportunity to improve your chances.
Improving your credit score is a marathon not a sprint, but when it comes to remortgaging your property you don’t always have the luxury of time. Whilst you begin your journey towards better credit, there are many ways in which you can manage any existing credit issues during the remortgaging process:
● Provide a bigger deposit
● Enlist a guarantor
● Enter a Joint Borrower Sole Proprietor agreement
● Speak to a conveyancing specialist
Whether you have a high or low credit score, it’s vital that you have a specialist conveyancer on hand to ensure the remortgaging process is undertaken in a professional and comprehensive manner and that your new mortgage is registered correctly with the Land Registry.
Our expert conveyancing team will take the drama out of the process, ensuring there areno hidden costs and provide you with clear expectations of the process at each stage. If you would like to discuss your remortgaging options, call us on 0330 058 0118, or fill out our enquiry form and a member of our team will get in touch at a time convenient to you.
You can read more about how our expert conveyancing team can help navigate common conveyancing pitfalls in our previous blog post here.