Remortage vs first time mortgage - are the checks as stringent?

[YouBelongWithMe]

We're due to re-mortgage next Nov, which will be the end of a five year deal (our first mortgage application).

In the run up to our mortgage application we were very careful with the picture of our finances - avoided any new credit agreements, lived very frugally to minimise any debt etc.

We are in the process of some renovation work and, if the remortgage wasn't looming, would be using some 0% finance deals and utilising more of our credit (our CC debt is steadily come down - we overpay every month). However, we're holding off because of the remortgage application.

Do we need to be as nervy as we are? Is remortgaging the same level of scrutiny as an initial mortgage?

For info we have never missed a payment, our credit scores are excellent but we do have some debt to our names.

If you stay with the same provider in my experience you go online, click a box for the product you want and it’s done. Very easy

It was nothing like the original one. We had money on credit cards (we pay in full each month but for our first application our mortgage broker said to clear them for 3 months to be safe).

If you switch providers then yes you’ll need to provide evidence of earnings etc again

Same boat here. Planning to stay with the same provider so I guess it’s a single click to switch and low hassle. However, to keep my options open…I’m planning that I’ll look for products earliest 6 months before current one ends. So books need to look clean 3 months prior. So until -9 months I can run my accounts as I wish so long as I can put it right by then (or even later if I don’t want to look for and lock in a deal 6 months before current one expires).

if yours is Nov 27 then you have until May/June before you even start looking.

If you're going to shop around for the best deal and/or use a mortgage broker, keep finances in check as they will be scrutinised if you go to a new provider. If you're intending to just stay with the same provider, you'll be fine.

We had our new deal secured 3months before the 5y fixed one ended. We used a broker.

If you stick with the same provider, it isn’t a “remortgage”, it’s a “product transfer”. There aren’t usually any checks involved in this. We did one when I was a SAHM (was employed when we did the original mortgage) and our broker said we didn’t need to tell them.

A remortgage is essentially all the same paperwork as an original mortgage.

Not at all. Our broker looked for the best deals, it came out to be the same provider and we just signed the forms. No affordability checks whatsoever.

You don't need to be nervous if you're staying with the same provider. My experience is that they don't do any checks at all as long as you haven't got behind in any repayments.

They just email you with the options and you tick a box whether you want a fixed rate mortgage or not and if so, for how long.