Remortgaging can seem daunting, especially with all the myths and misconceptions surrounding the process. Many people are unsure about whether they should remortgage, when they should do it and what their options are. This article will therefore explore some common remortgaging myths and clear them up for you.
Myth 1: Income from multiple sources disqualifies you from a mortgage
One common myth about remortgaging is that having income from multiple sources disqualifies you from obtaining a mortgage. This is not true. Many people nowadays earn their income from various sources, such as overtime payments, bonuses, investments or multiple jobs. Lenders understand this and have adapted their criteria to accommodate these situations.
By working with a mortgage adviser who has access to a specialist market from the comprehensive range of lenders, you can explore mortgage options that are tailored to your unique income situation. They can help you navigate through lenders who are more flexible and willing to consider your diverse sources of income.
Myth 2: Self-employed individuals must wait three years for a mortgage
Another prevalent myth surrounding remortgaging is that self-employed individuals must wait at least three years before they can be considered for a mortgage. While it's true that some lenders prefer to see a longer track record of self-employment, there are options available for those who have been self-employed for a shorter duration.
By working with a mortgage adviser who has connections to specialist lenders, you can increase your chances of finding a mortgage that caters to self-employed individuals with a shorter trading history. These specialist lenders understand the unique financial circumstances of self-employed individuals and may be more willing to assess your application based on other factors, such as your income stability and business prospects.
Myth 3: Buy-to-let mortgages require an existing mortgage
There is a common misconception that you can only apply for a buy-to-let mortgage if you already have an existing residential mortgage. While having a mortgage in place can certainly be advantageous for building a credit history, it is not an absolute requirement to obtain a buy-to-let mortgage.
Buy-to-let mortgages are designed for individuals who want to invest in rental properties, whether they are first-time buyers or experienced landlords. Lenders assess buy-to-let mortgage applications based on various factors, such as rental income potential, the property's value and the borrower's financial circumstances.
Even if you don't have a residential mortgage, you can still consider buy-to-let mortgage options when you're interested in buying a property for rental purposes. Consulting with a specialised mortgage adviser can greatly assist you in navigating. These advisers possess expert knowledge, allowing them to provide valuable insights, access a broad network of lenders and assist you in finding the ideal mortgage solution that aligns with your circumstances, regardless of whether you currently have a residential mortgage or not.
Myth 4: CCJs and past defaults make it impossible to get a mortgage
While it's true that having a County Court Judgement (CCJ) or past mortgage defaults can impact your mortgage options, it does not necessarily make it impossible to obtain a mortgage. There are specialist lenders who consider individual circumstances and take various factors into account.
These factors may include the timing of the CCJ or default, any subsequent improvements in your financial situation and other mitigating factors. By seeking the guidance of an expert mortgage adviser, you can navigate this process more effectively. They have the knowledge and access to a wide range of lenders, including those who specialise in assisting individuals with adverse credit histories.
With their expertise, they can assess your situation, provide tailored advice and help you find lenders who may be more willing to consider your application. Although it may seem daunting, there are viable mortgage options available, even with a history of CCJs or past defaults. Working with an adviser can increase your chances of securing a mortgage that suits your needs and circumstances.
For mortgage advice, please get in touch
Your property may be repossessed if you do not keep up repayments on your mortgage
The FCA does not regulate some forms of Buy-to-Let mortgages.
Comments