Remortgaging advice

stevetuk

Hi,

I am coming to the end of my first-time buyers 2-yr fixed rate mortgage deal with my lender. I am looking to remortgage, and ideally (if possible) borrow a small additional amount ~£5k for home improvements (boiler, repointing etc).

However, since taking up the mortgage two years ago I bought a car and still have a loan outstanding on that.

I also have some debt on 0% credit cards, around £7k.

Before I go back to my lender to talk about remortgaging, I'm worried that these things will mean they'll refuse me another mortgage. I've never remortgaged before so I don't know what's involved. When I took out the FTB mortgage they went through everything and I had a car I was paying off back then: one lender refused me and said I'd need to pay off that first, which I did and then it was fine.

Would the same happen now?

What if I went to a different lender, would it be even worse?

Any advice much appreciated! It's all affordable, just not sure what the lenders will do/say.

Contemptuous

You can't remortgage with your current lender. What you're looking to do is switch to a customer retention product for your existing mortgage and take out additional borrowing. Some lenders have a minimum amount you can borrow on top of your mortgage (e.g. £10k) which could be an issue. They will have to reassess affordability taking the extra borrowing into account.

If you remortgage to a new lender then you'll be subject to affordability checks again which will probably be different to what you went through last time as MMR has happened since.

Jhoney_2

Perhaps if you go online to change product with your existing lender (it's called a retention deal not a remortgage), you could avoid all the worry you are feeling BUT do not add the loan?

Then you will not be assessed at all - and if you manage to save some money on the mortgage payments, you can then pay for your boiler etc.