Re-mortgaging affordabilty checks?

fromtheshires

Howdy all
I'm booked in to remortgage next week and have a couple of questions.

Im going to be staying with the same vendor (Stanander) after number crunching and comparing various vendors.

I am also lucky enough to be able to pay off £20,000 when I remortgage. I also want to reduce the term by keeping payments as they currently are (well about £15 a month more than I pay now)

I know Santander dont credit search applicants when they re-mortgage as they state this on their website, but if I'm looking at reducing the term by increasing the payments by £15 a month, will they then do an affordability checks? The other option is to pay slightly less than I am now and still be able reduce the term, just not by as may years. I will ask them before I begin but anyone who knows this it would be a great help.

I just dont want to be put onto the SVR as I cant 'afford' a mortgage under the new MMR rules and end up paying a substntial amount more than I need to, although if that happens I guess I could then decide to look elsewhere....

muhandis

In your place, here's what I myself would do -

1. I'd go to the santander for intermediaries affordability calculator, put in all the details (income, amount, term, outstanding debt, monthly outgoings, etc) and see if it says whether it will lend me the amount and term I require or not.
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

2. If the computer says OK, then proceed with the advised remo.

3. If the computer says NO, then I personally would avoid getting any advise from Santander and do a non advised online product switch and use any excess cash I have to make overpayments.

4. Do note that you can achieve the same result through reducing your term or overpaying as Martin explains here http://www.moneysavingexpert.com/news/mortgages/2015/03/decrease-the-term-or-overpay-my-mortgage-martin-lewis-answers

fromtheshires wrote: »

Howdy all
I'm booked in to remortgage next week and have a couple of questions.

Im going to be staying with the same vendor (Stanander) after number crunching and comparing various vendors.

I am also lucky enough to be able to pay off £20,000 when I remortgage. I also want to reduce the term by keeping payments as they currently are (well about £15 a month more than I pay now)

I know Santander dont credit search applicants when they re-mortgage as they state this on their website, but if I'm looking at reducing the term by increasing the payments by £15 a month, will they then do an affordability checks? The other option is to pay slightly less than I am now and still be able reduce the term, just not by as may years. I will ask them before I begin but anyone who knows this it would be a great help.

I just dont want to be put onto the SVR as I cant 'afford' a mortgage under the new MMR rules and end up paying a substntial amount more than I need to, although if that happens I guess I could then decide to look elsewhere....

TheShape

Have you considered keeping the term as it is (or extending it) to keep the 'minimum' payment down and therefore be more affordable?

You can then make overpayments (subject to conditions) when you are able, which will in itself bring the mortgage term down.

fromtheshires

TheShape wrote: »

Have you considered keeping the term as it is (or extending it) to keep the 'minimum' payment down and therefore be more affordable?

You can then make overpayments (subject to conditions) when you are able, which will in itself bring the mortgage term down.

Yes, I have looked into this but unfortunately its not as benifical as doing what I need to do.

@Muhandis - Thanks for this. I never knew they did an intermediary service. From that now bookmarked tool, I can borrow more than I need to and I was being generous on my outgoings so it looks like plan a is a go :beer:

Typhoon2000

Committing to a shorter term if you are disciplined enough to overpay or make a lump sump payment to achieve the same is generally not a good idea. All I you do is limit your choices in the future.

amnblog

Originally Posted by TheShape
Have you considered keeping the term as it is (or extending it) to keep the 'minimum' payment down and therefore be more affordable?

You can then make overpayments (subject to conditions) when you are able, which will in itself bring the mortgage term down.

Originally Posted by fromtheshires Yes, I have looked into this but unfortunately its not as benifical as doing what I need to do.

Why do you believe this to be the case?