First time re-mortgage

Palookaville

Hi

In November, my 3 year fixed deal with Nationwide runs out. As I will be applying for my first remortgage, I have no idea what the banks are looking at with regards to getting the best deal.

I've heard the banks are getting even more stricter with regards to lending practices, what are they looking for with regards to affordability?

I have a credit card debt of around 10K which my partner says I must pay back before we apply for the mortgage, and I am also reading that the bank expects 6 months of bank statements before re-mortgaging takes place.

We both are on a good wage, but I would like to know what I should be expecting from a first re-mortgage and if there are any steps that I need to take now (other than reduce the amount owed on my credit card ) to help.

Thanks in advance for any advice.

Thrugelmir

Applying online for a new product with your existing lender should avoid the necessity for any checks. If you remortgage with a new lender then your credit history and debts will be a factor.

Trying_to_be_good

If you're paying interest on your credit card debts you should be looking to pay them off as quickly as is reasonable in any case - just in case your current lender doesn't have any attractive deals when you want to remortgage. It's also worth looking at how the debts have arisen to make sure it's not a case of living beyond your income. I have interest-free credit card debt at the moment from fixtures and fittings on home improvements - that's cheaper than my mortgage, so not all credit card debt is bad, but I wouldn't want to remortgage with it!

Palookaville

I've got 2, no interest to pay until 2017 but I realise I might be asked why such a debt, I rented for ages so literally had to buy everything apart from beds to furnish a house so that's a big factor and the first 2 years of having a mortgage, there wasn't much spare money. Things are better now and I think I can pay 6k off before November but not much more than that. My mortgage is with Nationwide and so is one of my credit card so it's interesting they might not do the necessary checks.

I take it my debt would hinder me by gettting not such a good rate if I couldn't pay it all back before November?

Contemptuous

Palookaville wrote: »

I've got 2, no interest to pay until 2017 but I realise I might be asked why such a debt, I rented for ages so literally had to buy everything apart from beds to furnish a house so that's a big factor and the first 2 years of having a mortgage, there wasn't much spare money. Things are better now and I think I can pay 6k off before November but not much more than that. My mortgage is with Nationwide and so is one of my credit card so it's interesting they might not do the necessary checks.

I take it my debt would hinder me by gettting not such a good rate if I couldn't pay it all back before November?

The rate is linked to your LTV, not your level of unsecured debt.

Palookaville

Well that sounds promising. LTV "may be" around 25-30%

Thrugelmir

Palookaville wrote: »

My mortgage is with Nationwide and so is one of my credit card so it's interesting they might not do the necessary checks.

Switching products is not a remortgage. However lenders can impose whatever internal checks they wish. By applying online then direct contact with the lender (i.e. an advisor) is hopefully avoided.