Remortgage changes

Trixabell

Good afternoon

I am aware that the legislation for re-mortgaging has changed to make it easier for homeowners to renew their deals without having to go through the stress test etc.


Has anyone any experience of the new procedure? We do have some credit card debts on 0% but are up to date on all payments and we are actually ahead on our mortgage.


I am a real worrier when it comes to money. We are paying down our debts but know we won't have cleared the credit cards by the time we re mortgage in Jan. When our fixed rate ends our monthly payments will jump up £500 per month. We can afford this but obviously it will make it much harder to clear the debts.


Any advice would be greatly appreciated?

MortgageMamma

Hello Trixabell

Just because you've got a bit of debt doesn't mean you can't afford a remortgage. You could ask a mortgage adviser to do an affordability assessment for you, most will do this for free as it does not take long.

If you are in a situation where you cannot remortgage due to debt, then a product transfer (thats what its called) means that you stay with your lender and they switch you to a better rate without any checks on affordability *unless you are on an interest only mortgage.

This is quick and easy to do. However, ensure you can afford the new repayments and always check if there is a cheaper deal you would qualify for elsewhere.

You can apply for a product transfer about 10-12 weeks before your rate is due to end.

Trixabell

Thanks for that Mortgage Mama. Would there be any reason that they couldn't do a product transfer?