What Do They Check When You Remortgage? Key Factors Lenders Look At

Remortgaging feels a bit like déjà vu, but instead of just rolling over your old deal, your lender sweeps through your finances all over again. If you're expecting an easy ride, it's time for a reality check. Banks and building societies are super cautious these days. They’ll dig through your money habits, scrutinize your credit score, and quiz you about every corner of your spending.

Wonder how thorough they get? It’s not just about whether you make your payments on time. They also want to see how you handle your bills, how steady your income is, and even check if your home lost or gained value since you first bought it. If you’ve switched jobs recently or your credit card balance crept up, expect them to notice. Lenders compare you to their ideal customer, so even small changes can make a big difference to your offer.

Getting ready to remortgage? Start gathering paperwork early, nail down your monthly budget, and check your credit report for mistakes. Quick tip: some lenders peek at your social media, so maybe save those holiday snaps for later. Being prepped early means less last-minute stress and a better shot at walking away with the deal you want.

• Why Remortgage Checks Matter
• Credit History: What Lenders Really Want to See
• Income, Outgoings, and Affordability Tests
• Property Value and Surveys
• Red Flags That Can Hold You Back
• How to Boost Your Chances Before You Apply

Why Remortgage Checks Matter

Remortgaging isn’t just swapping your old mortgage for a shiny new one. It’s more like hitting the reset button, and that means the lender needs to make sure that lending you money still makes sense based on your current situation. Each time you ask to remortgage, they’ll look closely at your finances, your house, and your track record paying back debt. This is where all those checks come into play—they are not just there to annoy you. They’re about protecting both you and the bank from future pitfalls.

Ever since the 2008 financial mess, lenders have stepped up their rules. The government even made this official with the 2014 Mortgage Market Review, which forced banks to look harder at whether you can afford your new loan, today and in the future if rates go up. You might have breezed through checks years ago, but don’t assume it’ll be the same now. These days, remortgaging checks are tough for a reason: UK banks lost billions when people couldn’t pay back risky home loans.

When you apply for a remortgage, the checks help spot if you’re a safe bet. Lenders want to be sure you can keep up with payments—not just now, but if something changes, like interest rates creeping up. They also need to confirm that your property is worth as much as you think, because it acts as security for the bank. If your financial situation has changed or your home lost value, that could affect the deal you get or even whether you’re accepted at all.

If you pass the checks, you’ve got a much better chance of landing a better rate or unlocking extra cash tied up in your home. But if any red flags pop up, the lender might offer you a higher rate or say no altogether. So, these checks aren’t just a hurdle—they’re what decides whether remortgaging saves you money or leaves you stuck.

Credit History: What Lenders Really Want to See

This is where most remortgage applications live or die—your credit history. Lenders are laser-focused on your financial track record because it tells them if you’re a safe bet. They’ll take a hard look at your recent and past behavior: did you pay your credit cards on time, miss a mobile bill, or max out your overdraft? Even a single late payment from last year can make them think twice. Weird, right?

Most lenders use three big credit reference agencies in the UK: Experian, Equifax, and TransUnion. Each one has their own scoring system, so your numbers might differ depending on which report a lender pulls. Here’s how credit scores generally stack up:

Lenders don’t just look at the score. They dig into the details: the types of credit you have, how much debt you’re carrying, and whether you ever missed payments on things like utility bills or car loans. Using payday loans? That’s a red flag. Too many recent credit applications? Also not great.

Some tricks to tidy up your credit record before you remortgage: Check all three agency reports for mistakes. Dispute anything that looks wrong. Register on the electoral roll (that’s surprisingly useful), and try to pay off or pay down cards before you apply. If you spot a late payment lurking, write a simple note of explanation—lenders sometimes look at this if they’re on the fence.

• Don’t open new credit cards or loans before you apply—this can make you look risky.
• If you’ve got a high credit limit, use a small part of it. Low balance, high limit looks good.
• Never ignore even tiny debts; unpaid library fine? It just might pop up in your file.

One last thing: most lenders want to see a stable credit history back at least six months, but a spotless track record over the past two to three years makes you look solid. If you’ve just sorted out old issues, waiting a bit before applying can improve your odds. Your credit history is like your financial CV—make sure it tells a good story.

Income, Outgoings, and Affordability Tests

Lenders don’t just hand over a new deal without making sure you can handle it. They dig into your income, your expenses, and run what’s called an “affordability test.” This isn’t just a one-off look at how much you make versus your debt. It’s a deep dive. They’re trying to avoid giving a loan to someone who might struggle to make the payments later on.

First things first, you’ll need proof of your income. That usually means:

• Recent payslips (usually the latest three, sometimes up to six if you’ve changed jobs or work variable hours).
• P60 form from your employer.
• Bank statements showing your salary coming in (again, last three to six months).
• If you’re self-employed: last one or two years’ tax calculations, SA302s, and maybe even financial accounts prepared by an accountant.

Now let’s talk expenses. Lenders go through everything. They want to see if your spending matches up with what you say. Expect questions about childcare, utility bills, credit repayments, insurance, gym memberships, and sometimes even how much you spend on food or eating out. They’re looking for regular commitments that could chip away at what you could afford for a new remortgage deal.

Here’s a fact: The UK’s Mortgage Market Review in 2014 forced lenders to get extra strict—so now they run “stress tests.” They’ll check if you could still afford payments if interest rates rise by 1-3% over the next five years.

If the math says you won’t have much left after bills, lenders might offer you less, ask for more proof, or flat-out say no. Pro tip: If you can, clear down debt before applying, and don’t open any new credit accounts. Every little bit helps when the lender runs those all-important affordability checks.

Property Value and Surveys

Your home's value is a really big deal for your remortgage. Lenders have to be sure the property's worth the loan amount you want. They usually arrange a new valuation, even if nothing has changed since you got your first mortgage. This isn’t always a full survey; sometimes it’s just a quick online check called an 'automated valuation model' (AVM). If things look complex, or the property has weird features, they might send someone out for a proper inspection.

No surprise, house prices have been jumping around lately. In the UK, for example, the average house price as of May 2025 is around £285,000, up about 2% from last year. If your area’s market has cooled or if you’ve made big improvements, that can swing things either way.

Here’s why lenders care so much: they use your property value to work out your 'loan-to-value' (LTV) ratio. This figure basically compares your loan to your home’s value. Lower LTV usually gets you better remortgage deals, while a high LTV might mean higher rates or even a decline.

Worried your place might be undervalued? Keep records of upgrades—like new windows, insulation, or a kitchen makeover. Photos and receipts help show a surveyor your home’s worth more than before. If the lender’s value comes in low, you can sometimes appeal. It’s not a lost cause, but it does mean extra time and effort.

According to Which?, "surveyors have to be realistic, not optimistic, so don’t assume home improvements always push your value up as much as you hope."

To sum up, checking your property value isn’t just a box-ticking exercise for lenders. It seriously affects what deals you can get when you remortgage. If your home is worth more now, you could save money with a lower LTV. But if values have dropped, you might need to rethink your plans or even sit tight for a while.

Red Flags That Can Hold You Back

If you think lenders are just being picky, think again. There are some warning signs that nearly always set off alarm bells during a remortgaging check. A single red flag can either bump up your costs or shut down your application completely.

• Missed or Late Payments: Recent missed payments—especially on things like loans, credit cards or your current mortgage—count way more than older blips. Most lenders like to see a clean track record for at least the past 12 months.
• High Credit Utilisation: When you’re using over 50% of your available credit, lenders might think you’re stretched. Try to keep this below 30% for the best shot.
• Unstable Employment: If you’ve just started a new job or work on short-term contracts, most banks want to see you’ve been in steady work for at least 6 months. Self-employed? Two years’ worth of accounts is the usual ask.
• Big Changes in Income: A sudden drop in income—maybe you went part-time or lost bonuses—can scare off lenders if it impacts affordability checks. They want to see your take-home pay is enough to cover the new deal.
• Major Outgoings: Big monthly payments, like new car loans or other mortgages, get flagged quickly in affordability tests. Lenders check your bank statements closely, so nothing really flies under the radar.
• Credit Issues and County Court Judgements (CCJs): Any fresh CCJs or default notices are almost always a deal-breaker with mainstream lenders. Even some historic payday loans can be a problem, especially if used recently.

If you’re curious about which factors stand out most, take a look at this:

Don’t ignore joint debts either. If your partner’s credit report looks iffy, it’ll still get checked if you’re applying together. The good news: spotting these warning signs means you can do something about them before jumping in with a new lender. Clean up old missed payments, pay off debts (or at least pay them down), and keep everything above board on your application. The fewer surprises, the smoother your remortgaging ride will be.

How to Boost Your Chances Before You Apply

Want the odds on your side before you start the remortgaging process? Preparation is everything. Lenders love seeing squeaky-clean credit, steady income, and paperwork that's all in order. Here’s how to get yourself remortgage-ready, without the last-minute scramble.

• Check your credit file early: Request your free credit report from Equifax, Experian, or TransUnion. Fix any errors you find—like outdated addresses—or accounts that aren’t yours. Even a small mistake can trip you up.
• Pay down debts: Try to lower your outstanding credit card and loan balances. Lenders look for low debt-to-income ratios. UK data from 2024 shows applicants with debts under 30% of their income get approved almost twice as often as those above 50%.
• Keep your income stable: Avoid switching jobs right before you apply. Lenders prefer at least 6-12 months in your current job for PAYE workers. If you’re self-employed, have 2+ years of accounts ready.
• Don’t apply for new credit: Every hard search dents your credit score, even if you don’t take up an offer. Hold off on new cards or loans until the remortgage is sorted.
• Sort your paperwork: You’ll need recent payslips, bank statements (usually 3-6 months), proof of address, and your current mortgage statement. Make digital copies so you’re not hunting for files at the last minute.

Here's a quick look at a couple of typical approval stats, so you can see how much these steps can help:

Plus, keep an eye on your bank account activity before you apply. Weird spending or dipping into overdraft right before your application can throw up red flags. Run your finances a bit tighter for the months before you apply; it actually makes a difference. The more 'boring' your accounts look, the happier lenders tend to be.