How does debt impact remortgage?

[LongWetSummer]

So we are due to remortgage in January 2025. We have about 28k of credit card debt. I know this isn't great and I am working on it, but it's likely that the bulk of that debt will still be present come remortgage time.

How will this impact us when applying to remortgage? My feeling is it might be ok if I'm with the same mortgage provider, but what if we were changing mortgage provider?

I imagine it could be a bigger problem if changing provider, they will run all checks as if you are doing an initial mortgage application. I went through a mortgage broker for my remortgage and ended up staying with the same provider as it was the best rate, and I remember her telling me that she was only collecting my payslips/bank statements/ credit card statements for her own checks, she didn't have to send them on to the mortgage company as it was a remortgage.

easier to stick to current lender. they dont do any checks. Called a product transfer. Its what we have done twice now, being in same position as you. Fortunately they were competitive, so no real loss by not switching lender.

But if you want to switch, they will do a thorough check to ensure u can afford the new mortgage,

Advice you to stick!

We recently remortgage with same lender and didn't need to provide any documentation, just logged in to online mortgage website and selected a new deal.

Do you know if this is the case when you port a mortgage also??

A remortgage or a product switch?

a product transfer won’t reassess affordability but a remo will

If you are materially changing the loan affordability will be reassessed

so porting would be as you’d be changing the security

edited because I read the post wrong originally

So realistically you need to think about if your mortgage is affordable for you given your debt, the lender wants to make sure you can make your monthly repayments

most, not all, lenders don’t reassess affordability on a product transfer providing the loan isn’t materially changed (no new applicants, no new borrowing etc) but some may look at your indebtedness which they get from CRAs. Have you missed any payments or defaulted?

No, but we did take a mortgage payment holiday over COVID.

As part of the government backed thing that happened? If so, that won’t matter. We did too and it didn’t impact us.

you won’t need a new agreement in principle or affordability assessment for a product switch (the fca doesn’t require lenders to, even when the rate increases, due to the end of the low interest rates to higher ones, so most don’t). Some might, to make sure you’re still the customer they want on their balance sheet, some also might check indebtedness which may impact your rate

id stick where you are until your debts are cleared even if the rate isn’t as favourable as you might see elsewhere. I’m assuming your with a high street and not niche lender?

Yes, the government backed one and yes, high street lender.