What financial details do I need to provide when I remortgage?

When it comes to remortgaging, preparation is everything. This is especially true when it comes to your finances.

If you’re a homeowner – and still paying off your mortgage – you would be wise to negotiate a new deal when your current mortgage deal ends. If you don’t, you will automatically go onto the standard variable rate (SVR) which will almost certainly be higher and lead to larger monthly repayments.

This is why you will need to remortgage and although the process is simple, you should make sure your finances are in order before you apply.

Around six months before your current deal ends, start looking at what other banks can offer you in terms of interest rates and upfront fees. A mortgage broker is great for this.

However, if you’re moving to a new lender and/or borrowing more money, you need to get your financial house in order. The first task is to check your credit rating.

You can do this by applying for a free credit check from agencies like Experian, Equifax and TransUnion. They’ll look at your credit cards, loans, overdrafts, utility bills and mortgages over the last six years and calculate a score based on that. The better your rating, the more options will be available to you.

If you’re worried about your credit rating, you can take steps to improve your score: for example, by paying off any outstanding bills, staying in credit at the bank, making sure you’re not linked to an ex-partner’s debt and closing any unused bank accounts.

How much you can borrow depends on a) how much equity there is in the property – the bank will send a surveyor to value your home, and b) what you’re earning (and how big your outgoings are). For the latter, you will be asked to provide proof of earnings such as recent back account statements Although this depends on the type of employment and varies for example if you are self employed or a director.

For the self-employed, the process is a bit more complex as lenders have different requirements to evidence income. Again, a broker will be able to help with this.

As a homeowner you’re already in a strong position. Making sure your finances are healthy before you apply for a remortgage, will increase your chances of a successful application.

By working with a mortgage broker, such as Charles Cameron & Associates, you will benefit from a friendly, helping hand throughout the remortgaging process. We work on your behalf to search the market for the mortgage deal that best suits your financial needs, and will make the process of securing the right deal for you as easy as possible, including providing the right financial information.

Don’t forget, our professional friendly advisers are on hand to support you and can help you explore all of your options.