Remortgaging v initial mortgage - differences?

homeless9

Hi,

Is there any difference in the way a lender calculates whether you can afford your initial mortgage v a remortgage?

Is it just simply the same calculation which I assume takes into consideration the interest rate / your income / your deposit / your debt / the amount you want to borrow ?

or are there other things they take into consideration like an increase in the value of your home or maybe a good history of paying off your mortgage each month?

Also, how much do overpayments play a part in your ability to borrow more when remortgaging. I am currently paying back £400 each month when I am contracted to paying just £360.

K_S

@homeless9 If you are doing a like-4-like remortgage (not borrowing any additional money), lenders often offer a more relaxed approach to affordability. For example Nationwide will consider up to 6.5x times Loan To Income multiple for like for like remortgages.

The increase in value of your home will definitely be factored in during a remortgage as the lender will do a valuation as part of the process.

A good history of making repayments is a necessary condition for a mainstream remortgage but do not allow you to borrow more. A track record of overpayments does not usually make any difference at remortgage time.