Credit check for remortgage?

essex.cyclist

Hello


I am due to remortgage in August this year. My current provider has a good deal that I will be looking to sign up for in May, when I become eligible.


I currently have some credit card debt that will be paid off by August.


Question is, if I seek to remortgage in May, will I be credit checked, even though it's the same provider? This would highlight my credit card debt and cause a problem.


If that is the case, I will just wait until August.


Same question for bank statements I guess!


Thanks

tidds

Yes absolutely. It's a full check process of credit history and affordability as if it was a new borrowing, of course they take into account your current mortgage on the credit history.

essex.cyclist

Thanks - so they'll actually want bank statements etc. as well?

sivs

It will depend if you are just planning on switching rates with your exisiting mortgage company or are you planning on doing a remortgage application.

I have two mortgage and recently I have just switch rates and no credit check was performed for either.

I have mortgage with both Nationwide & HSBC and they both have given me really good rates to just switch..

Hope that makes sense.

essex.cyclist

Thanks, but what is the difference between remortgaging and switching rates?


We are coming to the end of a fixed deal and would like to go onto a new fixed deal.

lufc7

In simple terms if you get to the end of your current fixed rate and you have a look at your options, you will usually:

A)stay on the SVR rate on you current product (usually higher payments)

find another bank or lender that can provide a better interest rate for your LTV and move to them (remortgage, full credit check, affordability and valuation etc)

C) Stay with current mortgage provider but sign up for another fixed product this is tying you in again for the fixed period but is generally very easy to do (switching rates).

Hope this helps

kingstreet

A customer retention product (staying with existing lender and not borrowing more) is usually offered without further income or status checks.

A remortgage is a new mortgage with a new lender to repay the old one. This requires a new mortgage deed, making it a "remortgage."

This will require affordability, status and property check.

essex.cyclist

Really helpful, thank you everyone.


I have also just seen this:


"As an existing mortgage customer, we don't do a credit search, you don't normally need a property valuation, there are no legal fees and you don't need to change your Direct Debit."


Looking good for sorting it out early then. Lovely.

kingstreet

Thank God for the horse's mouth, eh...

essex.cyclist

haha- yes!