Remortgage - Affordability Question

gabby71

Hi, I am due to remortgage in June 2026 and am currently roughly half way through paying off a 10k loan at £211 per month - I know this will be taken into account for affordability at remortgage stage and wondered if it would be better for me to take out a new 5 year loan for the 5k balance (which would reduce my monthly payments to around £100), or stay with the existing loan - I'm just unsure if the affordability aspect looks at monthly outgoings rather than the period of time the loan has left to run - thanks in advance

la531983

If you are picking a new rate with your existing lender with no changes to term/borrowing, nothing is looked at anyway. Pick a new rate, more often than not online, and away you go. Is this not an option?

ACG

As above, if you stay with your existing lender there are usually no affordability/credit checks. 
If you are switching then it really depends, does it pass affordability with the loan in place? If not, then you might need to rejig it. If it does, then it should be fine.

gabby71

la531983 said:

If you are picking a new rate with your existing lender with no changes to term/borrowing, nothing is looked at anyway. Pick a new rate, more often than not online, and away you go. Is this not an option?

Highly doubt I will stick with existing lender (Aldermore) as I had to use them due to a CCJ on file - CCJ has since dropped off so i'm hoping to remortgage to a high street lender with better rates