Remortgage due this year..... but have debts

CXG1979

Hi all,
What would be the best course of action here? My partner was laid off during covid, and took him a while to find work.  As a result, we of course landed ourselves in debt to make ends meet during this time with loans and credit cards.  We both have a healthy credit score as such, as everything is always paid on time, and little by little slowly getting there and getting things paid off, although this will still be a few years off to debt clearance; with that in mind, what do we think our options would be when we look to remortgage later this year?  I'm concerned these debts will prove a negative outlook to better rates that we would otherwise have been offered, and concerned that we'll have to opt to go to SVR rate, which will be an extra £400pm at present. Current mortgage is 2.19% with Santander.

FashionHeart

CXG1979 said:

Hi all,
What would be the best course of action here? My partner was laid off during covid, and took him a while to find work.  As a result, we of course landed ourselves in debt to make ends meet during this time with loans and credit cards.  We both have a healthy credit score as such, as everything is always paid on time, and little by little slowly getting there and getting things paid off, although this will still be a few years off to debt clearance; with that in mind, what do we think our options would be when we look to remortgage later this year?  I'm concerned these debts will prove a negative outlook to better rates that we would otherwise have been offered, and concerned that we'll have to opt to go to SVR rate, which will be an extra £400pm at present. Current mortgage is 2.19% with Santander.

Your best option is to speak to a Mortgage Broker, they should be able to give you advice on your situation.

MWT

CXG1979 said:

... what do we think our options would be when we look to remortgage later this year?

Do you really mean that you will remortgage with a different lender, or are you just thinking about the next product you could take from your current lender when your fix ends?

If staying with your current lender there will most likely be no new review of your finances and you will just be able to pick from the option they offer you at the time...

RelievedSheff

If you stay with your current lender and just switch products then there will be no additional credit checks when you switch. You may not get the absolute best rates mind.

If you want to remortgage to a different lender then there will of course be credit checks and full applications to contend with.

Having debts does not mean that you can not get a mortgage. It will affect your affordability so may affect the amount you can borrow, but provided your repayments are up to date it does not stop you getting a mortgage.

Londoncheesecake

We have just remortgaged with Santander.
We changed the product (went from fixed to tracker) and increased the term (to reduce payments for the interim) and there were no affordability checks.
 The only question they asked was were there any new debts within the last 12 months. 

MWT

Londoncheesecake said:

 The only question they asked was were there any new debts within the last 12 months. 

That will be because you changed the term, just picking a different product would probably not have generated any questions at all...

ZeroSum

I've just remortgaged with current provider (nationwide) and I'm up to my eyes with credit card 'debt' (its all 0% Stoozing). No questions asked, just a few clicks on the app

Londoncheesecake

MWT said:

Londoncheesecake said:

 The only question they asked was were there any new debts within the last 12 months. 

That will be because you changed the term, just picking a different product would probably not have generated any questions at all...

Yeah that’s right.
If we had kept the same term we could have just accepted a new offer online on the banking app. We were given about 8 different deals.
The offers came through 4 months before remortgage due.

dimbo61

So have a look on your lenders website Santander and see what offers they have for existing customers 
Now I don't think you will see anything at 2.19% so you mortgage is going to cost more each month but you will have an idea of new deals and rates.
Check when you can sign up for a new deal 3/4/6 months in advance ?
Use " whatsthecost" to get a rough idea how much the mortgage will cist each month.
Term ( how many years left ) outstanding mortgage debt, and interest rate.
If you need security many 5 year deals are cheaper than 2 year deals.
Work on clearing debts and building up savings/ overpaying the mortgage.
Good luck

eng1991

ZeroSum said:

I've just remortgaged with current provider (nationwide) and I'm up to my eyes with credit card 'debt' (its all 0% Stoozing). No questions asked, just a few clicks on the app

With Nationwide how many months before the remortgage due could you fix? Ours is due end of september this year so just wondering

mcpitman

eng1991 said:

ZeroSum said:

I've just remortgaged with current provider (nationwide) and I'm up to my eyes with credit card 'debt' (its all 0% Stoozing). No questions asked, just a few clicks on the app

With Nationwide how many months before the remortgage due could you fix? Ours is due end of september this year so just wondering

Pretty sure it was up to 6 months at one point, maybe 3/4 months now for products with an ERC.

https://www.nationwide.co.uk/mortgages/existing-customer-switching/guide/