Don’t sleepwalk to mortgage renewal – Here’s why
Mortgage renewal
So what can you do?
Many people do stick with their existing lender but switch their deal – this is called a ‘product transfer’.
Instead of that you can change your lender and switch deal – commonly known as ‘remortgaging.’
Not planning on moving house
If you are not planning to move house and your current deal is within six months of ending, you can act. So you need to think ahead on your future housing needs.
When moving home it’s not a product transfer or a remortgage that you require, but a home-mover mortgage.
Lock in
Recent changes mean almost all lenders should let you lock in a new mortgage offer six months before you need it to start.
What you need to do?
There are a some do’s and don’ts you should note before you apply for a remortgage deal:
- Don’t apply for credit just before a mortgage
- Avoid erratic or heavy spending in the lead up to your application
- Keep out of your overdraft
Collect information
Your new lender may want to see any, or all of:
- Last three months’ bank statements
- Last three months’ pay slips
- last three years’ accounts/tax returns (if self-employed)
- Proof of bonuses/commission
- Your latest P60 tax form
- ID documents
- Proof of address
Why use a broker?
These deals can be hard to find as lenders often vary how long you can lock in a rate for.
Brokers are likely to know which you can hold for months.
There are risks and different outcomes to consider in all of the various scenarios.
A broker can advise you on these to ensure you get the best deal possible.
If you’re looking for advice Get in touch and we’ll talk you through your options, or sign up to our monthly newsletter.
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