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Original poster

Remortgage - chances of being accepted

17 replies

Noonoo12344 · 22/01/2023 10:46

My mortgage is coming to an end this year so will need to remortgage.

I am worrying that my financial situation might mean we get declined.
Just looking for advice from anyone that is in the know with this sort of thing.

The house is worth 320k and we need to remortgage for around 160k.

Between me and my partner, we earn around 60k a year. We have never missed a payment but about a year ago my partner took out a 10K loan for a vehicle and I have 2K loan. I've also been doing a bit of overspending with Klarna and therefore now in my overdraft at around £400. I can sort this out within the next couple of months pay but am worried that this might look awful and we may get rejected??

Any advice?

OP posts:
user143677433 · 22/01/2023 10:50

Sort the overdraft ASAP. Do you have a credit card you could put it onto instead? Is the overdraft planned or unplanned?

The problem with an overdraft is it makes it look like your spending is out of control.

The £12k of loans should be fine.

Original poster
Noonoo12344 · 22/01/2023 10:54

I don't have a credit card but the overdraft is arranged.

Ok, I will work on sorting that out over the next couple of months.

I'm basically in my overdraft because I went a bit mad at Xmas and didn't pay attention to quite how much I was paying with Klarna (pay over 3 months). Stupid really!!

I hope this won't affect it!!

OP posts:
TheShiningPup · 22/01/2023 10:58

When you say remortgage, do you mean your fixed rate is coming to an end and you need a new product or you need extra borrowing?

If the former, you can normally get a new deal with the sane lender without any additional credit checks.

Original poster
Noonoo12344 · 22/01/2023 10:59

Sorry yes, fixed rate coming to an end.

Oh that sounds positive!! Thank you

OP posts:
Harrysutton · 22/01/2023 11:00

Yes if you stay with the same lender it’s a simple pick a product. It’s only if you move mortgage lenders they do any checks. So maybe this time stay put.

OnTheBoardwalk · 22/01/2023 22:09

Yes as other people have said, if staying with the same provider you will be ok if you choose a new mortgage paying what you are paying now each month

if you choose to pay more than you will have to go through their checks again. If you stay the same you won't

might not be the best option in the market but will get you over the next couple of years

NatalieH2220 · 22/01/2023 22:12

We're also remortgaging and have just stayed with the same lender as they do no/minimal checks this way.

You may not get the best rate on the market but it shouldn't be miles off and saves a lot of worry.

NashvilleQueen · 22/01/2023 22:14

Assuming you've paid your mortgage each month the same lender will just allow you to switch. There's no new apc unless you change lender.

Furries · 23/01/2023 05:09

As others have said, if you stay with the same lender then you will be fine.

The first time I had a fix come to the end, I was armed to the gunnels with all my info (payslips, loan info, etc). I was a bit disappointed when it went through so smoothly over the phone. The guy explained that (paraphrasing here) they already had the debt and it was just a continuation.

So, staying with your current provider is definitely easier re financial checks etc. you also save on valuations, which a new company would need to do.

thestealthwee · 23/01/2023 05:27

I'd say you need to have a back up plan

I earn £75k - £180k equity in the home. Wanted to remortgage by £35k to pay ex husband his share of equity in our divorce. Bank declined

BarbaraofSeville · 23/01/2023 07:17

Even if you can't remortgage with another lender, you should be able to get another deal with your existing provider.

However, you need to rethink your approach to managing cashflow.

Both Klarna and overdrafts are seen as a a negative by lenders, and overdrafts are very expensive.

However, if you get a credit card and use it for the same spending, and pay it off in full every month, it won't cost anything - you could even earn a small amount of cashback and responsible use of a credit card is seen as a good not a bad thing by lenders.

thestealthwee · 23/01/2023 07:46

I should also say mine was with my existing lender

Auntieobem · 23/01/2023 07:51

You'll just move to the standard variable rate when your fixed term ends surely? No need for a remortgage. Check your mortgage paperwork

BarbaraofSeville · 23/01/2023 08:00

But the standard variable rate is usually more expensive, so not advisable to be on in many cases.

elevenplusdilemma · 23/01/2023 08:02

Are you looking at staying with the same provider? I've never been asked for any evidence of financial situation when remortgaging with the same bank. Just a tick-box exercise online to say that our circumstances remain the same and the paperwork follows in the post in a couple of days.

BumbleNova · 23/01/2023 08:03

@Auntieobem The SVR is usually at least a couple of percent above the best deal! Nobody in their right mind should go on the SVR - it's extortionate.

Talk to a broker OP - try and get a steer and wethey can ask questions before you make an application but staying with your existing lender

PurBal · 23/01/2023 08:06

Just stick to the same lender. We will have to do the same when ours is up as I’m planning on going part time as can’t afford paying full time childcare for 2. We’ve spoken to a broker.

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