When applying for a remortgage, there are several factors you need to take into account, apart from the obvious amount and rate and lender that you would prefer.These factors determine the amount of loan and the rate and also determine the lender.
The factors include, Type of property, is your property standard construction, brick built tiled roof or is it non standard construction, timber/steel framed. This alone can make a big difference on the lender and the rate. Also if non standard, you may find it difficult to go with a mainstream lender, and generally the amount of loan or LTV (Loan to Value) will be reduced, sometimes to only 60-65%.
Other factors include, type of employment, are you employed or self employed, if employed, have you been in your employment past the probationary period. If self employed do you have any proof of income, accounts, accountants reference, this also dictates type of lenders and rates.
The current market has certainly made it more difficult with many lenders either pulling out of markets or changing their criteria. A good financial advisor who deals with whole market, whole market means they deal with many different lenders, rather than a tied advisor, who deals only with their companies product, would be able to help and save a lot of wasted time. The Mortgage market within the UK is regulated by the FSA (Financial Services Authority), anyone or any company offering advice on Mortgages must be authorised by the FSA.The FSA holds a register of authorised people and companies, which can be accessed via their website.
When an advisor recommends a product they will provide you with an illustration and a key facts document, this gives the relevant facts about the product being recommended and why, ensure that you read this document thoroughly, it is an important document.
This short article is not exhaustive and only provides pointers regarding mortgages, for more formal advice the FSA wesbite is a good starting point.
Alan Reed is a financial expert and writes for the following websites
Problem Remortgage from Chrysalis Finance
Poor Credit Remortgage from chrysalisfinance
