Remortgage Checks: The Essential Guide for UK Homeowners

Thinking about swapping your mortgage for a better rate? Before you sign anything, lenders will run a series of checks. Knowing those checks inside out saves you time, money and nasty surprises.

Key Checks Lenders Run

First up, your credit score. Lenders pull a full credit report to see how you’ve handled debts in the past. A score above 740 usually lands you the best rates, but even a score in the 600s can work if your income is solid.

Next, they assess affordability. This isn’t just about your current mortgage payment; they look at all regular outgoings – council tax, utilities, credit card bills – and calculate whether you could still cover the new monthly amount if interest rates rise.

Then comes the property valuation. An appraiser will visit your home to confirm its market value. If the house has gone up, you could borrow more or get a lower loan‑to‑value (LTV) ratio, which often means a cheaper rate. If the value has dropped, you might need to bring extra cash to the table.

Don’t forget the employment and income verification. Lenders want recent payslips, P60s or tax returns if you’re self‑employed. They’ll check that your earnings are stable and sufficient to cover the new mortgage.

Finally, there’s the debt‑to‑income (DTI) ratio. This figure shows how much of your monthly income goes to debt repayments. Keep it below 45% to stay in the safe zone.

How to Prepare for a Smooth Remortgage

Start by pulling your own credit report. Spot any errors, dispute them and pay down high‑interest cards to give your score a boost.

Gather all your financial paperwork early – recent payslips, tax returns, and a list of monthly expenses. Having everything ready speeds up the application and shows lenders you’re organized.

If your property value has risen, request an updated valuation from a reputable estimator. A higher value can lower your LTV and improve your rate.

Consider paying off a small chunk of your mortgage before you apply. Reducing the outstanding balance not only cuts future interest but also improves the LTV, which lenders love.

Finally, shop around. Different banks and building societies use slightly different criteria for the same checks. One lender might see you as a low‑risk borrower while another hesitates.

By understanding each check and getting your house in order, you turn the remortgage process from a gamble into a calculated move. You’ll walk into the meeting knowing exactly what the lender will see, and you’ll be ready to negotiate the best deal possible.