Re-mortgage Advice

alansmith7

Hi Everyone

I'm considering switching my loan which is interest only to repayment and i want to know who should i go to for re-mortgage? Currently im with santander ( the worst bank in the uk) and i want to move everything away from them. Currently my mortage is 70K and i have been approached by lloyds bank which i have made a appointment with regarding my mortgage.

I have heard HSBC or Halifax rates are good but I have never dealt with re-mortgages


Thanks

alansmith7

I have forgot to mention they (loan provider) do a credit search on me or will it depend on the equity?

ethank

You will get a credit search for all applications that you do!

I have heard that HSBC are really picky!

alansmith7

ethank wrote: »

You will get a credit search for all applications that you do!

I have heard that HSBC are really picky!

im not sure if my credit rating is good or good but i think its average i guess. I have halifax are good but im not sure i have never dealt with halifax.

ethank

Have you checked your credit reports with Equifax, Experian, and CallCredit?

alansmith7

ethank wrote: »

Have you checked your credit reports with Equifax, Experian, and CallCredit?

i have checked my experian credit report and everything seems ok on my credit report and i always make my payments on time

ethank

You really need to do all three.

Also, do you have a plan for paying back your interest only mortgage, as you are likely to have to explain how you intend to repay. According to MA, examples of repayment vehicles include:

• cash saved in a savings account or ISA (although some lenders are no longer accepting this as a repayment vehicle)
• stocks and shares ISAs
• pensions
• investment bonds
• shares
• unit trusts
• regular savings plans (endowment policies), and
• other properties

No provider is likely to let you say that your intention is to repay capital from the proceeds of the sale of that property or appreciation of value in the property.

alansmith7

ethank wrote: »

You really need to do all three.

Also, do you have a plan for paying back your interest only mortgage, as you are likely to have to explain how you intend to repay. According to MA, examples of repayment vehicles include:

• cash saved in a savings account or ISA (although some lenders are no longer accepting this as a repayment vehicle)
• stocks and shares ISAs
• pensions
• investment bonds
• shares
• unit trusts
• regular savings plans (endowment policies), and
• other properties

No provider is likely to let you say that your intention is to repay capital from the proceeds of the sale of that property or appreciation of value in the property.

thanks for the advice... i will need start making appointments with the banks and see what happens

Yorkie1

I'd suggest that you don't just make appointments with banks left right and centre. You risk having a lot of credit searches being done, which will reduce your credit score.

If you're not confident in identifying a remortgage product yourself, consider going to an independent mortgage broker who will assist.

Thrugelmir

Unless you earn £50k or £75k joint then HSBC is a no no.

Nothing to stop you overpaying your mortgage now with any spare cash.

As you only owe £70k the benefits of remortgaging may not be that great. As you may well incur fees to effect the transfer.