Homeowners that need to remortgage due to the coming end of their current mortgage deal, those that seek to switch prior to their deal ending, or those that have let theirs lapse and moved to their lender’s standard variable rate (SVR) should consider that patience will be a big part of their obtaining a remortgage deal. Patience and planning are now important factors in the successful approval of a remortgage loan.

Earlier in the year, new guidelines were introduced to lenders to make sure that borrowers were protected from obtaining loans they could not afford. The Mortgage Market Review (MMR) requires that lenders consider the borrower’s habits of spending and saving. Lenders not only complete a stress test to determine if borrowers can afford a loan presently, but they determine if the loan is affordable should interest rates increase during the term of the loan.

Because of the new guidelines, processing of a remortgage takes longer than it did before the MMR. Borrowers are required to provide more information than they did in the past which could require them to gather up a sufficient amount of data that could take time. Then the lenders must comb over the data to meet the MMR guidelines.

Homeowners must therefore, offer plenty of time in advance to secure a remortgage according to the current interest rate offers.  Waiting too long could mean that the homeowner will miss out on the best deals available.

By planning, being patient, shopping around for a good deal and being ready to start with plenty of time in place to complete the remortgage process, gaining a great low interest rate, such as those currently offered, could be accomplished.