When should I start remortgage hunting?

Phil3822

Hi all, after a bit of guidance. My current mortgage fixed deal finishes on March 30th. I am with Platform on a high interest rate so keen to move. Wife and I credit files are clean now.

When should we approach a Mortgage advisor?

I need to give 30 days notice anyway with my existing lender.

Further to this my wife has a credit card with a £1000 balance. We are due to clear this end Feb time and would therefore be just about debt free. ( I have the odd £200 debt on my credit card). My point of mentioning this is I am not sure if I should wait until this £1k is clear prior to contacting an advisor. Although the credit files will take a month or so of updating anyway so the £1K will probably not show as clear until mid March.

All advice would be great. Thanks.

kingstreet

You need to be making a start now. I allow two months to source, apply for and complete a remortgage.

On the card issue. Simply tick the box on the application which says the debt will be repaid on, or before completion. It doesn't have to be paid off before you apply.

Phil3822

Ah, thanks for that advice Kingstreet! This is my first remortgage and I never knew about the card repaid option on application. Will ensure that is sorted! Thanks again...

Any other thoughts considering I am a newbie to the remortgage game.

Phil3822

Just wondering, if I didnt clear the credit card debt and the £1000 credit card debt was included in the application would this make much difference? Thanks again.

kingstreet

Assuming a lender takes the minimum payment as 3%, it's £30 a month, or £360 a year off your income. If the income multiple is 4x income, that means £1,440 off your borrowing power.

Phil3822

Thats not so bad... Mortgage outstanding is £76600, approx value is £105000. Wage is £29K so I should be ok based upon that and all other things being ok... I hope.... Thanks again.

ACG

Ive not been an advisor long enough myself but i spent a few months at another brokers before going it alone, they used to ask me start trying to get in contact with clients 3 months in advance, this gave them a few weeks of trying to book in appointments and then just over 2 months to get everything ready. It seemed to work quite well so thats what ill do...so i would thing its about right to start looking now.