Remortgage to a cheaper deal - affordability checks

edatkin123

Hello!

I have had a mortgage with NRAM for 7.5 years and following a 5 year fixed rate i am now on their SVR.

by using mortgage deal finders on various sites I have determined that I can save £300-500 per month by remortgaging.

I am ready to contact a broker to see what is on offer, before I do I have a question with regards affordability checks.

I heard Martin Lewis on 5 live recently explaining that affordability checks are not always carried out by some lenders if you are remortgaging to a cheaper deal. This will be changing later this year with European legislation comes into play, when all remortgage applications need to undergo such checks. It was mentioned after a lady rang in and explained the nonsense of being refused a remortgage deal even though its cheaper than the current mortgage she had been paying without problems for years.

Could anybody confirm that this is correct and if so, are only certain lenders going to be willing to "skip" affordability checks?

Any info/advice would be much appreciated.

amnblog

As usual, Martin is half correct and has the advantage of not having to make it happen.


Consult a mortgage broker as some smaller lenders are seeking to assist in these cases.