Cornerstone UK Mortgages offers Re-mortgages. If you are looking for a remortgage or are not sure of the remortgage that is better suited to your personal circumstances, then look no further. “We offer a comprehensive range of products to try and find a product that is tailored for you”

For remortgage call Cornerstone UK Mortgages on 0333-015-6848 or email me through the website.

 

Is it a good time to remortgage?

It can be a good time to remortgage if:

• you’re at the end of your existing mortgage deal
• you’ve had the mortgage a long time and interest rates have come down

 

The act of remortgaging can be a wise financial move, whether it is to get a better interest rate on your mortgage or to consolidate your debts into one payment.

However this decision cannot be taken lightly, and you should investigate thoroughly to ensure you are getting the best remortgage deal. There is competition within the marketplace for your business, so shopping around could save you money

Once you have an idea of what kind of deals are out there, you can contact your current lender and see what they will offer you so you can work out if it’s worthwhile switching to a new lender.

So if you already have a mortgage on your home and are in the market for a remortgage, read on as we delve into more detail in this step by step guide.

Remortgage process

The remortgage process is less involved than buying a new home and it may be easier than you think. However, it is still a decision that deserves a lot of thought before going ahead.

A good place to start is to think about what you’re hoping to achieve by remortgaging. For example, are you looking to save money by getting a lower interest rate than you’re currently paying?

If your initial deal has ended or is about to end, remortgaging can help secure the best new deal and potentially save you money.

However, there are other costs that need to be considered when remortgaging. You may be charged set ups cost for your new deal such as an arrangement fee, valuation fee or legal fees, however lenders will often offer deals with low or no up-front costs. If using a mortgage broker, some may also charge you a fee for their advice.

How long does it take to remortgage?

Remortgaging is typically a quicker process than buying a new home but it can still take some time so plan ahead.

 

• Step 1 –Shop aroundIf possible, give yourself plenty of time to do your research and find the right deal. Most lenders allow you to apply and secure a rate for 3 months before you complete, which means you can move straight across to your new deal when your old one finishes. There are a lot of products on the market and they can disappear fast, so using a broker it can help speed up the search.
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  Step 2 – Decide which deal is best for youThink about whether you want a rate that goes up and down as interest rates change, or if you would prefer to guarantee your monthly payments for a period of time by fixing. Remember not to focus entirely on the interest rate on offer, you should also take into account any fees you will need to pay.
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  Step 3 – Submit your applicationWhen you submit your application, you will be required to provide proof of identification, proof of income and details of your outgoings. It will save time if you are prepared, so get together at least 3 months payslips or accounts, your passport or driving licence, and bank statements before you apply. Submitting your application through a mortgage broker is useful as they can help you through the whole process and deal with the lender on your behalf.
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  Step 4 – AssessmentBefore agreeing your mortgage, a lender will need to assess your income, financial commitments and outgoings to make sure the mortgage will be affordable. They will also look at your credit rating and carry out a valuation of your property.
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  Step 5 – Offer and CompletionAfter carrying out all of their checks, the lender will then provide you with a mortgage offer. Your conveyancer will undertake all of the necessary legal work and take the process through to completion by arranging for the funds to be transferred to your previous lender. If you are borrowing additional money, to consolidate other debt or carry out some home improvements for example, the extra will be paid to you.

Whatever the reason for remortgaging, talking to a fully qualified mortgage broker can help you find the best deal. They can also advise on how much you can afford to borrow – whilst giving you advice about which mortgage may fit your needs and circumstances.

 

If you are interested in remortgaging your property, or you just want to see which options are available to you, then give me a call. 

Can I remortgage if I own my house outright?

People who have no mortgage on their home, (known as an unencumbered property) are in a strong position to remortgage. With no outstanding mortgage, you own 100% of the equity in your house. The mortgage deals available to you will depend on how much you want to borrow as a percentage of the current value of your property, which is known as the loan to value ratio (LTV). You will need to meet the criteria for the new mortgage. Lenders have slightly different rules for people who want to remortgage their unencumbered property. For example some lenders will offer you their purchase rates instead of their remortgage range – which may result in a better rate for you. Discuss this with me.

Can I remortgage when I’m over 60 or retired?

When you turn 60, you might find it difficult to get a mortgage. Some lenders are happy to give mortgages that borrowers will still be repaying after they have retired. But others will not.
It will get even more difficult if you want to remortgage at 65, 70 or older. If you’ve retired and no longer have an earned income, then you might not be able to remortgage at all.
Speak to me because I maybe in a position to check which lenders are most likely to consider applications from older people.Discuss this with me.

Can I remortgage if I’m self-employed or freelance?

Yes, you can remortgage but you might have difficulty finding a lender. Your problem will be proving that you have enough earnings to afford the repayments. This is less of a problem if you’ve been self-employed for a few years and have regular audited accounts showing that you have a steady income. Newly self-employed people need to convince lenders that they’ll be earning enough to afford the remortgage. Your tax returns can help here. Discuss this with me.

Can I remortgage my shared ownership home?

The answer is – probably. This is a specialist form of lending and you need a lender that offers shared ownership mortgages. Some lenders will offer their full range, whilst others will have specific shared ownership rates. Our mortgage advisers know where to look. If you wish to capital raise, to purchase an additional share of your shared ownership property – known as ‘stair casing’, Discuss this with me.

Can I remortgage if I have negative equity?

Negative equity means that your home is worth less than the size of your mortgage because house prices have come down since you took out the original loan. Speak to us to see if your lender will offer you a retention product that will save you money. Discuss this with me.

Can I remortgage with the same lender?

Yes, you can. Your existing lender will usually offer you a selection of retention schemes. We can compare these, and their set up fees (where applicable) to try and find a product that is tailored for you. Discuss this with me.

Can I remortgage during a fixed term?

The answer is yes, but doing so might not be your best option. If your existing product has early repayment charges, we will work out if we can save this penalty if you move your mortgage before it expires. We can advise you of your different options and talk through your requirements to determine your best solution. If you need to remortgage to release equity, instead of incurring an early repayment charge you may be better taking a further advance for a short while – I can calculate your options and talk through the figures. Discuss this with me.

Can I remortgage before my deal ends?

Like the answer above, yes you can but remember to factor in any early repayment charges, if applicable. If you believe interest rates might increase you may wish to secure a new fixed rate sooner rather than later. Mortgage offers are valid for around 3 to 6 months, depending on the lender. So it can be worth reviewing up to 9 months before your current deal expires. Also you may be better off with a product that runs for a set number of years, i.e. 2 years, rather than until a fixed end date i.e. 30.06.19. This way you will still benefit from the full 2 years on the product. Discuss this with me.

Can I remortgage if I am on maternity leave?

Yes you can, but lenders policy on this varies greatly. For example; some will write to your employer to confirm your return to work date and your returning salary. A few will need your return to work date to be within 2/3 months of the start date of your new mortgage. Some will require proof of savings to cover the maternity period. Others may ask for future childcare costs. This may make the thought of remortgaging sound complicated and time consuming, it’s not. Discuss this with me.

Can I remortgage if I am about to change job?

Yes you can, but you will not have the pick of the whole market. If you are about to change jobs a handful of lenders will let you remortgage, assuming you meet all other criteria. Some may ask you to meet additional specific criteria, for example some will need your new job to start within a few months of your new mortgage, and others may not set any conditions at all. Whether you are better off waiting to remortgage until you have changed your job or go ahead now can be discussed with a mortgage adviser. Discuss this with me.

Can I remortgage if I am on probation period?

Yes, subject to conditions. A handful of lenders don’t like probation periods, but others will happily consider on a case by case basis. Stipulations can vary from being a professional, having continuous employment history, to time served on probation period. Don’t just assume you need to wait until your job is made permanent, talk to us today to see if you can get the ball rolling.Discuss this with me.

Can I remortgage using my Child Tax Credit & Working Families Tax Credit?

The short answer is almost certainly yes, some lenders will take 100% of both, if they are not due to end shortly/if your children are under 14 years old. Others will only take 50% and some will not accept at all. These differing policies can vary the amount you can borrow greatly. Discuss this with me.

Can I remortgage using my maintenance payments?

Most lenders will take a percentage of your maintenance payments, (from 50% to 100%), if you meet certain criteria – i.e. if they are via court order or have an established track record and/or have 3 months bank statements to prove them. Before we make a recommendation we can talk cases through with underwriters to ensure it all fits in principle. Discuss this with me.

 

Can I remortgage using mine or my dependents disability living allowance?

Depends on the lender; some are happy to use all your disability living allowance, others are not. Some will only use a percentage of it and/or have varying stipulations such as – it must be guaranteed for the term of the mortgage, or only if it is not your only source of income. Not only do our advisers know who will do what, they are able to talk directly to underwriters to discuss cases on an individual basis. This means we can get cases provisionally agreed before credit scores are completed. Discuss this with me.

Can I remortgage with a bad credit history?

It depends. We would ask you to send us a copy of your credit file. We can advise which company may be suitable for this as different lenders use different providers. Once we have this, we can see what the underwriter will be looking for and can advise accordingly. It is certainly worth talking to me before you commit to a new deal. Discuss this with me.

Can I remortgage if I have a Buy to Let mortgage in the background that is not self-financing?

Yes, probably but lenders policies on this varies greatly. Some will just need you to cover the shortfall with your income, taking it as a financial commitment, others will require your income to cover both mortgages in full. Lenders rental calculations vary from 100% to 150% of pay rate/lenders SVR. The potential savings you could achieve with remortgaging your Buy to Let might be worth investigating. Discuss this with me.

Can I remortgage to consolidate or pay off debt?

Yes, possibly. However, if you are consolidating debt, a lot of lenders restrict the amount you can borrow based on your property value. Policies also vary depending on the type of debt you are consolidating. But remember that by consolidating you would make an unsecured debt* secure. Also, if you are spreading the cost over a longer period, even on a lower rate, it may ultimately cost you more in interest, unless you overpay. All this must be considered, as this may not be the best course of action. Discuss this with me.

*With unsecured debts lenders don’t have the rights to any collateral for the debt. If you add the unsecure debt to your mortgage you would make it secured, which means the lender has the right to take the asset (your house) if you fall behind on your payments. 

 

Can I remortgage to capital raise for home improvements or personal use, i.e. to buy another property?

Whether you are looking to remortgage for home improvements or for personal use, i.e. to purchase another property, many lenders will consider lending up to 90% loan to value (LTV). Others will restrict the loan to value. We can help calculate your LTV and search the market for the best solution. Discuss this with me.

Can I remortgage to raise capital to buy someone else out of the property?

In this scenario many lenders will consider lending up to 90% loan to value, although many will limit you to 80% or 85% LTV. Your income will need to be sufficient to cover the mortgage in full. Some lenders ‘in house solicitors’ will be able to complete the additional legal work you will require, which is known as ‘transfer of equity’, for an additional charge. Others will expect you to use your own solicitor. Discuss this with me.

Can I remortgage to capital raise for business use?

It is possible, subject to criteria, but only about a third of mortgage lenders will consider this and the ones that do mainly restrict the loan to value to c70%. A select few may consider up to 85%. The answer can also depend on how established your business is. Discuss this with me.

Can I remortgage if I put solar panels on my house?

Most lenders are happy to consider properties that have solar panels, but will need you to meet certain criteria. For example, the lease needs to have a termination clause and/or will need the solicitor to confirm it meets CML/BSA criteria guidelines. Some lenders will charge an additional legal fee for this – others will not. Discuss this with me.

Can I remortgage a property I have recently purchased?

Some lenders will not offer you a remortgage until you have owned a property for at least 6 months. The good news is that others will let you remortgage from day one. Discuss this with me.

Can I remortgage my Help to Buy mortgage?

Not all lenders will remortgage Help to Huy, but a handful will. Out of these a few will restrict the loan to value. Our advisers can find your best option out of the lenders who will accept you, before your remortgage application is submitted. Discuss this with me.

Can I borrow 95% of the value of my new build house/flat?

Many lenders restrict the loan to value on new build houses and flats to 80%. A few lenders will consider up to 95%. Talk to our advisers to find out the maximum you can borrow.

How many years do I need on my lease to remortgage my leasehold flat?

On average lenders require around 70 years left on your lease at time of mortgage application. Although a few lenders will consider less, or will work from the years required at the end of your mortgage term. If your lease is short, it may be worth finding out how much it would cost to extend it, if possible, before you remortgage. As a longer lease may give you access to a better mortgage rate. Discuss this with me.

Can I remortgage if I have a second charge on the property with another lender?

About 50% of mortgage lenders will consider this, subject to affordability and will require a deed of postponement/ first charge. Don’t just assume your only option is with your existing lender, I could find you a better rate. Discuss this with me.

Can I remortgage using my bonus payments?

Most lenders will use this if it is guaranteed. If it is not guaranteed, a lot of lenders will consider using c50%. Tell us all the details you can about your bonus, (i.e. track record) and I will work out your options. Discuss this with me.

Can I remortgage using my overtime or commission?

Typically lenders will take 50% – of your average over the last 3 months. A few lenders will consider using 100%.

Can I remortgage using my limited companies retained profit?

A lot of lenders will not consider retained profit. However a good handful will consider if you are the 100% shareholder. As we have direct access to underwriters, tell me your scenario and I can investigate your options. Discuss this with me.

Can I remortgage if I am an IT contractor?

The good news is yes you can subject to underwriting. Generally if you are not PAYE, lenders will treat you as self-employed. Discuss this with me.

Can I remortgage if I am on a fixed term contract?

The simple answer is most lenders will consider on a case by case basis. Most will require a track record in the same line of work. Some will need the contract to have been renewed at least once. Discuss this with me.

Can I remortgage if I am a day/weekly rate, or zero hours’ contractor?

A lot of lenders will consider lending if you have a good track record with the same employer. It will depend on your individual circumstances. Discuss this with me.

Can I remortgage if I work for an Umbrella Company?

About 50% of mortgage lenders will consider your application, subject to credit score. A lot of these will treat you as self employed, but a few will not. My direct access to lenders underwriters may give us instant decisions in these situations.Discuss this with me.

Can I remortgage if I am a temporary worker or agency worker?

Your options will be limited but a handful of lenders may consider if you have at least 12 months continuous track record. Discuss this with me.

Can I remortgage on interest only?

Good question. The answer to this question is a minefield – it depends on your loan to value, the equity you have in your property and what method you have (if any) to repay the interest. You may well have more options than you think. Discuss this with me.

When I remortgage will all lenders use my credit score?

Surprisingly lenders don’t follow one rule, some just use your credit score, some just your credit check, and others use both. They are mainly divided between Experian, Equifax and Callcredit. Discuss this with me.

Can I remortgage if I missed payments?

If you missed a payment on an unsecured agreement it would be well worth calling us as some mainstream lenders will consider your case. You may have more options than you think. Discuss this with me.