Remortgage help for mortgage prisoners trapped on their current deal.
The MMR may be creating ‘mortgage prisoners’ trapped on less competitive deals because they do not fit new affordability rules.
As well as altering the way lenders review new purchase mortgage applications, the MMR has also has the unfortunate consequence of affecting the way remortgaging home-owners applications are now being viewed by lenders.
While you might want to re-negotiate your mortgage and switch to a lower rate to reduce monthly outgoings, this might prove difficult if a lender decides you can’t actually afford it.
Mortgage applicants are now stress tested to show that they could still afford repayments even if rates were to climb to 6 or 7%.
While the FCA has said that for borrowers with a good history who are looking for a straight forward mortgage switch, the affordability rules can we waived, this exemption is not been applied by all lenders.
In many instances when going it alone applying direct to a lender, applicants are facing remortgage rejection.
So if you no longer fit your lender's affordability rules what are your options?
- Enlist the services of an independent ‘whole of market’ broker.
- Approach smaller lenders.
There are building societies who seeing the problems some remortgaging customers are facing, are moving in to fill the gap.
If you’re stuck on your lender’s higher rate then consider deals from building societies such as the Ipswich and Melton Mowbray.
When trying to remortgage it may prove difficult without expert help. As a home-owner you are not aware of all lending criteria and so making a search on your own means you could very well end up applying to lenders who would refuse your application.
There are over 200 mortgage lenders offering products in the UK, and with dozens of products offered by each, it is very easy to miss out on the one which is best for your circumstances.
By calling Deal Direct you can significantly improve your chances of finding a deal you can switch to.
For a remortgage offer tailored to your needs call one of our advisers on 0800 048 8828.
