Buying a house is one of the most exciting things that you can do. But let’s face it, the property will always be one of the most expensive purchases you ever make and the most stressful. You think that buying the house is the hard part, but once you are in it, you have to think about the time you come to the end of your mortgage deal and then do it again when going to remortgage your home. This is important to ensure that you get the best possible deal, and you don’t pay any more per month than you need to. So what do you need to think about when it comes to a remortgage application? Here are some of the things to think about.
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1. How healthy does your bank account look right now?
One of the first things to think about would be your bank account and how healthy it looks right now? The things to think about are:
- Whether you are using an overdraft facility and how far in deficit you are within it.
- Look out for any gambling and betting transactions on your bank statement. Lenders are not keen on these things. It might be worth giving up this hobby a few months before your application.
- Do you have much credit in your account? The more credit you have in the account, the less risky you look.
- Look at the incoming and outgoing transactions. If there are lots of transactions for things like Paypal, for example, where you may innocently be selling stuff online, make sure you can provide a record for it.
- Keeping an eye on these things will help you be in the best possible position to put in your remortgage application.
2. How long have you been at your job?
Another thing to think about would be how long you have been in your job. If your position hasn’t changed for more than six months, then there shouldn’t be any issues, but if you have recently changed jobs, you might want to hold off applying until you reach the six-month mark.
3. What’s the value of your property?
The property’s value matters for the remortgage just as much as it would have done for your original application, especially if you have made some changes to the property or are hoping to borrow more.
4. Is there anything that could hold you back?
Lastly, there are a few things that could be holding you back when it comes to your applications. These include:
- Not providing proof of income – You will likely need to give paycheques or invoices if you work for yourself.
- Debts – Even if you are remortgaging, any outstanding debts on loans or credit cards might go against you.
- Your credit score – Any mortgage company will look at your credit score and history and investigate any records that might be there.
In fairness, most of these things are very similar to what you might have considered when you were applying for your first mortgage. Let’s hope these reminders will ensure you can secure the best possible deal when it comes to change.