Planning to remortgage in 2016?

If you are looking to remortgage in 2016 you are advised to do so before the EU Mortgage Directive comes in to force in March next year. 

The directive will force all lenders to start reviewing remortgage applications on the basis of a new loan, and all applicants will have to undergo stringent financial stress tests.

So what does this mean for you?

At present there are record low remortgage rates on offer from lenders willing to assess applications under transitional arrangements. This means it will be simpler to apply and be accepted for a mortgage now because as once the rules change transitional arrangements will end.

By applying for your deal early you will have access to deals which are still available at record lows, waiting until March means you could miss out.

Once the new EU directive is adopted, all applicants will have apply for a remortgage as though it is a new deal. Regardless of the rate offered affordability checks will be based on rates of 5 to 7%. Many current home-owners therefore may discover that even though they are looking to switch to a cheaper product, they will be refused if they cannot afford a deal at a rates of 5% or above.

With this change many remortgaging home-owners will fall foul of new affordability rules.

So what can you do?

As it gets harder to be accepted for a mortgage you can improve your chances of success by taking professional advice.

Choosing independent broker Deal Direct can increase your chances of finding a mortgage suited to your needs.

We play a critical role in successfully securing finance from lenders. We have helped many applicants who if applying direct to a lender, many have been rejected.

Deal Direct are here to get you the remortgage deal you need, we offer:

• Expert mortgage advice.
• A ‘whole of market' product review.
• Management of your application from start to finish.

Call 0800 048 8828 for advice and a quote.