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Remortgage - Affordability Question
gabby71
Posts: 191
Forumite
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
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Comments
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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?0
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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.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.1 -
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 ratesla531983 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?0
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