Loan and remortgaging

GirlupNorth

Hi

I'm up for a mortgage renewal at the end of 2017. I'll be half way paying off a £6k loan with my current bank from then. I have no other loans (except student) and no credit cards/overdrafts and I will have some savings by then.

Will it make a difference? I was told I'd only get a credit check if we look at changing providers. But assume they may ask to look again at my monthly outgoings/expenses?

Not sure it's worth paying off early as I'd rather have savings for various things going on. But not sure how the remortgaging process really works yet?

Any advice would be great, only thing I'm worried about now!

minimike2

Hello fellow northerner.

General rule is always pay down debt before saving, since debt costs more money than your savings will earn (generally) - Yes it is sensible to have a fall back, but it makes more sense to repay debt first.

In terms of affecting your mortgage chances - It all depends on your income and affordability so impossible to answer without a full fact find. Most lenders allow you to switch to a new product without a full income and expenditure check, but some will. You should still look at what other options are available before just staying put.