Author: Dax McLean

Wanting to remortgage on maternity leave? Here we cover the whole process and what it entails. 

Thousands of births are recorded in the UK each year, and getting a remortgage on maternity leave is a common concern.

Getting a remortgage on maternity leave isn’t always straightforward and can cause worry and confusion, which is the last thing you need with a baby on the way.

However, with the right advice, it doesn’t have to be.

This guide explores how maternity leave can affect your remortgage application and the best way to approach it to ensure a successful remortgage on maternity leave.

How does maternity leave impact remortgaging?

Mortgages have direct linkages to how much money you earn, and the lender will consider things like maternity leaves when assessing your affordability.

When you’re on maternity leave, you’ll likely be on reduced pay for some or all of that period, putting you in a different financial position.

As a part of responsible lending, lenders must ensure your affordability by assessing your monthly income against your household’s financial outgoings, including mortgage repayments.

When remortgaging on maternity leave, some lenders will assess your affordability based on the reduced income figure, making it challenging to meet the affordability criteria.

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Can you remortgage on maternity leave?

Yes. Getting a remortgage on maternity leave is possible, provided you find the right lender.

Some lenders can offer a remortgage based on a varying percentage of your regular salary, or your pay on maternity leave, reducing the amount you can borrow.

To get the best deal, you need a lender who will assess you based on your full salary before going on maternity leave.

You can increase your chances of finding such lenders by applying for remortgages through a mortgage broker who specialises in getting mortgages for applicants on maternity leave or those about to go on one.

Related quick help remortgage guides: 

• Remortaging on maternity leave 
• How soon can I remortgage?
• Shared ownership remortgages
• How long does it take to remortgage?
• How to remortgage for an extension

Informing lenders if you’re pregnant or going on maternity leave

While lenders are unlikely to directly ask if you’re currently on maternity leave or whether you will be soon, it’s essential to be upfront and honest in your application because it will significantly impact your finances.

The application will likely ask whether you expect any material changes to your financial circumstances or anything that can affect your ability to keep up with mortgage repayments.

Having a baby counts as such a change because it will be an extra mouth to feed and clothe and will affect your finances and the lender’s assessment.

You also need to inform the lender if you’re applying for a remortgage when going on maternity leave.

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It may not be apparent on recent payslips, so you need to explain to the lender that your income is about to be reduced for a specific period. To ensure they make an informed decision.

Failing to provide material information or lying may count as non-disclosure and can get you accused of mortgage fraud, even if you did it unintentionally.

Providing all the information about your financial situation ensures you get a remortgage deal that works for you and can afford comfortably even after the baby comes.

How to get a remortgage on maternity leave

Follow these essential tips to ensure your application for a remortgage on maternity leave is successful:

Get a reference letter from your employer

It’s a good idea to show lenders that your decrease in salary is temporary and you’ll soon be back to full salary.

Ask your employer to write a reference letter to give the lender confidence and support your remortgage application. The letter should confirm the following:

• You’ll be returning to work.
• Your return date.
• The hours you’ll be working.
• Your salary.

This is enough assurance for many lenders to proceed with the application using your previous or projected salary.

If you’re going to return to work part-time, the lender will decide based on the new salary.

Adjust your budget

Consider how going on maternity leave and having a child will affect your finances, and adjust your budget to ensure affordability.

It will help you decide whether you can afford the new rates of the remortgage with the growing family.

You’ll need to show the lender you can cover monthly repayments on the reduced maternity pay if you want them to consider a remortgage based on your regular salary.

It can include evidence of extra income like your partner’s salary, money in a savings account or gifts from family members.

You can also show lenders you’ve considered how much you’ll spend on childcare after returning to work.

It can be something like a family member caring for your child for free, and it shows them you’re thinking long-term.

Use a mortgage broker

A suitable broker with experience working with applicants on maternity leave can provide expert guidance to smoothen the remortgage process.

They’ll help you explore the entire market to find a lender willing to remortgage based on your full salary and circumstances.

A broker with whole-of-market access will know the exact lenders who can help you remortgage on maternity leave with little to no caveats.

It will ensure you don’t waste time with unsuitable lenders or damage your credit score by making multiple applications that get declined.

Best of all, the best brokers have deep working relationships with mortgage providers and can negotiate the most favourable deal on your behalf.

Can you remortgage on maternity leave when self-employed?

Yes. But your circumstances will influence whether or not the remortgage process is straightforward.

The lender will need to know how going on maternity leave will affect your income. Such effects usually depend on your involvement in the business’s day-to-day operations.

Your income will be significantly impacted if the business can’t function without you being there.

Getting a remortgage will be simpler if you can show lenders you have employees who can take care of the business during your leave and not affect your income.

Lenders will be less willing to grant a remortgage if you’re a sole trader or the business can’t function without you.

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Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

Remortgage On Maternity Leave Final Thoughts

Finding the right lender is critical when you want to remortgage on maternity leave.

The last thing you want is to get a remortgage based on a percentage of your full-time salary or get rejected after approaching multiple lenders.

To ensure you get a suitable lender the first time, ensure you use a broker when applying for a remortgage on maternity leave.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

If you recently bought a property and want to remortgage, most lenders will only accept remortgage applications after you’ve owned the property for at least six months.

Lenders calculate the six-month rule from the day you register your name on the title deeds in the Land Registry.

However, you can still remortgage your home sooner than six months after buying if you need to release funds sooner or move to a better deal.

Here’s everything you need to know about how soon you can remortgage.

What is the six-month mortgage rule?

The six-month rule is not a rule or a law. It’s more of a guidance initially issued by the Council of Mortgage Lenders (CML) that encourages lenders not to accept applications against a property until the owner is registered at the Land Registry for at least six months.

The guidance applies to UK lenders, conveyancers and solicitors where mortgage applications are made or properties owned for less than six months.

Although ownership begins the day your registration enters on the title deeds at the Land Registry, the amendment happens several months later.

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Each lender interprets it differently and applies it to their lending criteria since there are no hard rules.

Some choose to lend after six months, others extend it to 12 months, and some even lend without requiring a minimum ownership period.

Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

What is the purpose of waiting six months?

The main aim of the six-month rule is to prevent money laundering and mortgage fraud.

Before the 2008 crash, you could purchase properties using a mortgage or undeclared cash and apply for a remortgage with a new lender immediately after completion using a higher valuation than the purchase price.

It was easy for people intent on money laundering to pay cash for properties and immediately remortgage to get the money back out.

Lenders were left fully exposed, and during the crash, when properties were repossessed, they were found to be worth less than the outstanding mortgage, resulting in huge losses for banks and lenders.

The rule to wait six months was necessary to stop such issues and back-to-back transactions.

Can you remortgage within six months?

Yes. Various options allow you to remortgage a property shortly after purchasing it, although it can be more challenging than when you remortgage later.

You’ll need to find a lender who doesn’t require you to wait six months or longer to be able to remortgage.

You also need to consider how much it will cost to exit your current mortgage when deciding whether remortgaging is the best option for you.

If you already agreed to a discounted rate or a five-year, three-year or two-year fixed-rate mortgage, it will likely be costly to leave before the end of that period.

Reasons for remortgaging sooner

There are many genuine and valid reasons you may want to remortgage within a short period after taking ownership of the property. These include:

• You recently inherited a property and want to release some equity or capital.
• Your financial situation has suddenly changed, and you want to remortgage and release some equity.
• You initially chose a variable-rate mortgage, and a rapid rise in interest rates doesn’t suit your current needs.
• You’ve finished renovations, raised the property value, and want to borrow against the new value.
• You purchased the property using money from friends and family to speed up the process and want to pay them back.
• You bought the property using a bridging loan and wish to repay it.
• You want to increase your borrowing to finance debt consolidation or home improvements.
• You purchased the property at auction and want a long-term mortgage.
• You initially bought an uninhabitable property, and it is now ready for a mainstream mortgage after some developments.

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Requirements to remortgage sooner

Several lenders will consider your remortgage application within six months, but it will be scrutinised and only approved in some instances.

Most eligibility requirements are similar to other mortgages, but you’ll need to provide additional documentation depending on why you’re remortgaging.

These include:

• A purchase audit trail.
• A solicitor’s confirmation that you’ve requested an update at the Land Registry if you’re not yet listed as the owner.
• A completion statement confirming the property’s original purchase price
• Evidence for increased valuation, such as completed renovations or developments.

Related quick help remortgage guides: 

• Remortaging on maternity leave 
• How soon can I remortgage?
• Shared ownership remortgages
• How long does it take to remortgage?
• How to remortgage for an extension

A broker can help you remortgage sooner

You need a specialised broker to help you remortgage soon after buying a property because such deals are rare, and not all brokers have experience with such transactions.

Some reasons why you need a broker include:

·       Case preparation

Lenders make decisions on remortgage applications made within short periods after ownership on a case-by-case basis.

It involves explaining why you need to remortgage so soon. A suitable broker will know what the lender wants and help you make your application on the best terms.

·       Access to deals

Many deals and options on remortgaging within six months are unavailable from high-street lenders like banks.

A broker will help you access broker-only deals from specialised lenders active in the market. They know which lenders impose or don’t impose the waiting period and help you compare the best deals.

·       Personalised advice

Exiting the current mortgage can be costly, and a broker will help compare such costs against the savings you might make with a new deal.

They’ll weigh your options and provide personalised advice on whether remortgaging now is the best option or if you should wait.

What does a day-one remortgage mean?

Day one remortgages are not mortgage products. It refers to remortgaging a property you’ve just bought, and although it can include owning it for only one day, it doesn’t have to be the first day of property ownership.

It’s only suitable if you’ve owned the property for less than six months and have a valid reason for a remortgage.

Most people take out day-one remortgages on properties that need renovations and improvements, like adding bathrooms and kitchens to bring them up to standard.

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How Soon Can I Remortgage? Final thoughts

The market for remortgaging soon after buying a property is limited and includes many specialist lenders.

As a result, it’s better to seek expert advice from brokers experienced in such cases to help you find the best deal.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Shared ownership mortgages help non-owners and budding buyers who can’t quite afford to purchase a home on the open market get onto the property ladder.

Shared ownership remortgages are an excellent way to increase your share in the property or secure a better deal on your loan.

Here’s everything you need to know about shared ownership remortgages to help you understand what to expect and how to proceed.

What are shared ownership remortgages?

Shared ownership remortgages involve increasing your shares in a home bought through the shared ownership scheme.

To understand shared ownership remortgages, you need to know what a shared ownership mortgage is.

Shared ownership doesn’t mean sharing your home with someone else. Instead, it means sharing the ownership of your home with a housing association.

It’s a government-backed scheme that offers eligible buyers the chance to purchase a percentage share of a leasehold property instead of the total market value.

Since you only need a mortgage for the share you’re purchasing, the deposit you require is much lower than what you would need when buying outright.

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Your initial share or the portion you own can be between 10% and 75%, and then you pay rent to a housing association or local council on the part you don’t own.

Shared ownership remortgages enable you to increase your shares up to 100% until you own the property outright through a process known as staircasing.

A shared ownership remortgage can also involve a new agreement between you and a lender on the portion of the property that you own.

Related quick help remortgage guides: 

• Remortaging on maternity leave 
• How soon can I remortgage?
• Shared ownership remortgages
• How long does it take to remortgage?
• How to remortgage for an extension

Shared ownership staircasing

The shared ownership staircasing process involves building the percentage share you own on your home, and you can staircase up to full ownership.

After purchasing more shares, your rent payments decrease while your mortgage increases.

You’ll no longer pay rent when you buy 100% of the home, only the mortgage, service charges, and ground rent.

Under the new staircasing rules, you can staircase by 1% each year for 15 years from the date of purchase.

You can pay the 1% from your savings, take out a further advance with your existing lender or remortgage your shared ownership home.

• Further advances: This involves your existing lender agreeing to give you a further advance to increase your shares on the property.
• Shared ownership remortgage: You can remortgage by switching to a new lender if the current lender doesn’t offer the deal you want. You can get a larger loan, repay the existing lender and buy additional shares with the surplus funds.

Previous owners could only make three applications to buy more shares, with the final resulting in the purchase of the property.

Policy changes have ensured many properties no longer have restrictions on the number of staircasing applications you can make.

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Shared ownership remortgaging process

1. Talk to your current lender

Contact your current lender to get a redemption quote and find their options.

Most lenders offer better deals to existing customers considering leaving, and you can save time and money by remortgaging with the same lender.

However, remember to shop around and see what else might be available, even if you like the deal your current lender offers.

2. Inform your housing association

Depending on the housing association or local council scheme, shared ownership can have varying terms and conditions.

Ensure you inform your housing association that you intend to remortgage because they need to agree and can make a small administration charge.

They must approve the new mortgage and ensure it meets their requirements.

Some properties are subject to restrictions like being unavailable as a second home, so don’t forget to check the terms of your lease for limitations.

3. Valuation

After contacting the housing association, they’ll normally request a property valuation to determine the value of your shares.

The valuation indicates whether or not you have any equity in the property and the value of the shares you want to purchase.

Housing associations rarely accept valuations from agents unless they have an accreditation from the Royal Institution of Chartered Surveyors (RICS).

Ensure the valuation is conducted by an accredited surveyor qualified by the RICS. Most housing associations provide a list of accredited surveyors for you to choose from.

Ensure you’re ready to remortgage within three months after valuation, as they only last for three months.

You’ll be forced to reschedule another valuation if the current one expires, resulting in additional charges.

4. Switch or stay

If you choose to switch lenders, the remortgage process is similar to applying for a new mortgage. It includes providing a mortgage statement of your current loan, full details, income assessments and repayments.

The lender will also conduct a credit search to ensure you don’t have any defaults, late payments or CCJs on your credit record.

Ensure you provide all the required documentation and paperwork on time to avoid delays.

The remortgage application can take four to eight weeks. Your solicitor can arrange for it to complete on the day your current mortgage deal expires and ensure you’re free from any early redemption penalty charges.

You can continue with your new mortgage lender after the legal aspects are complete, and once you get close to a new expiry date or three months prior, you can start the process again.

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Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

Costs involved in shared ownership remortgages

Shared ownership remortgages involve more costs than usual mortgages or remortgages because you’re limited to the number of providers or lenders.

The market is less competitive because it’s not considered mainstream. You can expect the following fees:

• Valuation fees
• Lender arrangement fees (new or existing)
• Administration fees
• Legal fees
• Stamp duty fees depend on the value of additional shares you’re buying, usually starting when the shares exceed 80%.

Remortgaging your shared ownership home with your current lender is usually the cheapest option.

However, it’s not recommended to remortgage before shopping around to find out what other options are available.

Some lenders can offer to cover any fees involved in the remortgage process as part of the deal.

Shared Ownership Remortgages Final Thoughts

Shared ownership remortgages differ from normal remortgages and may take some time to complete.

Talking to a specialist mortgage broker with experience in shared ownership remortgages can ensure you find the best deal to suit your needs and avoid wasting time, effort and expense.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Self-employed remortgaging may feel like a challenge, but it’s similar to any other remortgage.

The only difference is proving your income. While the employed only need payslips from the last three months as income proof, proving your income to the lender when self-employed requires more paperwork.

Adequate preparation and the right support or advice from mortgage brokers or advisors can help make the process smoother and more efficient.

Here’s everything you need to know about how to get a self-employed remortgage.

Can the Self-Employed Remortgage?

Yes. You can remortgage when self-employed and access the same rates and deals as everyone else, provided you have a solid self-employment track record and can prove your earnings.

To ensure you can afford repayments, most lenders will need you to show at least three years of accounts prepared by a qualified accountant for accuracy.

Other lenders can ask for two years, while some will accept one year of accounts if you’ve been self-employed for less than two years.

Your circumstances and need will determine whether it’s easy or difficult to get a new deal from a mainstream lender.

Thankfully, you can find lenders who specialise in helping self-employed remortgage borrowers and brokers or advisors who can help you find the best deals.

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How The Self-Employed Remortgage Process Works

The self-employed remortgage process is similar to the employed, apart from the extra paperwork. Here’s how you can remortgage:

• Start shopping around 3 to 6 months before your current mortgage deal ends. Timing your remortgage helps you avoid moving into the lender’s standard variable rate (SVR). The SVR is the lender’s default rate which you’ll get into when your current deal ends if you dint remortgage or switch to a new deal. It’s usually higher than the rates you find in a deal, and the repayments can go up and down each month.
• You can make a product transfer by making a new deal with your current lender or switching to a different one. Product transfers can mean less paperwork, but checking out other deals available can help you save a lot of money.
• Staying with your current lender through a product transfer ensures you dint jump through many hoops. Provided you’ve been making your repayments on time, you’ll not appear as risky, and they’ll already know everything they need to know about you.
• If you decide to switch lenders, they’ll need to carry out the same eligibility checks as when you first got a mortgage, including credit checks and income proof.

The whole process can take from four to eight weeks, and it can be less or more depending on your preparation and circumstances.

Always ensure you give yourself enough time for remortgaging before the current deal ends.

Who Do Lenders Consider Self-Employed?

You’ll be considered self-employed by the lender if you own over 20% of the company where you earn your main income.

You can be a contractor, sole trader, freelancer, director of a limited company or in a business partnership.

Lenders will require you to provide your SA302 tax calculations or tax tear overviews for the previous two years as proof of income if they consider you self-employed.

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Can I Remortgage If I’m Newly Self-Employed?

Whether or not you can remortgage with some lenders will depend on how newly self-employed you are.

If you became self-employed soon after getting your mortgage, have at least one year of accounts and a completed tax return, plus proof of getting more work like signed contracts, you can easily remortgage with some lenders.

However, remortgaging when you haven’t filed your tax return for the first year of trading can be tricky.

You’ll not have any definitive proof of your income from the lender’s point of view. The lender cannot judge your affordability without scrutinising tax returns from your first year.

All lenders, including mortgage lenders, are reluctant to take on risk and must ensure you can afford repayments.

Therefore, even if your new venture is successful in the first few months, the lender will need a bigger sample size before agreeing to lend you money.

However, you don’t have to lose hope in such a situation. Some specialist lenders can help, or you can remortgage with your existing lender if you’re already making repayments on time while self-employed.

Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

Tips for A Smooth Self-Employed Remortgage

Although it can be a challenge to get a self-employed remortgage, it’s not impossible. Here are a few tips to help make the process a little easier:

1. Prepare Your Paperwork

You may find yourself racing against time to get the tax returns and accounts you need to remortgage, depending on when you got into self-employment.

Start getting your paperwork in order early by registering with Her Majesty’s Revenue and Customs (HMRC) and keeping clear and up-to-date records.

2. Improve Your Credit Record

A good credit record goes a long way in showing you handle borrowing and repayments responsibly.

Demonstrating such responsibility and boosting your overall credit rating before you apply can help reduce obstacles to remortgaging when self-employed.

3. Reduce Your Loan to Value (LTV) ratio

The LTV ratio shows the size of your mortgage compared to the value of your property.

The lower your LTV, the less risky you’ll look to lenders, which translates to lower interest rates and more affordable monthly repayments.

4. Provide Proof of Future Work

Evidence of future income streams and contracts with ongoing and reliable clients can help show lenders you’re less of a risk, especially if you don’t have at least two years’ worth of accounts.

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5. Use A Mortgage Broker

A mortgage broker is your best bet if you’re self-employed and want to remortgage.

A broker will have access to the whole market and save you the headache of searching and picking the right deal.

They can access exclusive deals, show you lenders who can accept your application based on your circumstances and share their expertise in remortgage solutions for the self-employed.

Related quick help remortgage guides: 

• Remortaging on maternity leave 
• How soon can I remortgage?
• Shared ownership remortgages
• How long does it take to remortgage?
• How to remortgage for an extension

Self Employed Remortgage Final Thoughts

The only difference when remortgaging while working for yourself is providing proof of income.

A mortgage broker or advisor can hold your hand through the entire process, from initial searches to dealing with the legal stuff, to ensure the process is as smooth as possible.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Valuations for remortgage provide indications of a home’s current market value.

It’s part of the remortgage process where your current or new lender assesses your property to ensure it’s worth what you say before approving you for a new mortgage deal.

Here is everything you need to know about valuations for remortgage.

Why are valuations for remortgage important?

Valuations for remortgage help lenders ensure your property is enough as security.

To mitigate the risk of remortgaging, lenders want to know that if you default or fail to keep up with repayments, they can repossess your home and sell it to recover their money.

Remortgage valuation considers whether the property is suitable and shows the property’s current loan-to-value (LTV) ratio.

The LTV is the size of your mortgage compared to the value of your property expressed as a percentage.

For example, if your home is worth £100,000 and your outstanding mortgage is £75,000, your LTV ratio is 75%. Your LTV will impact the deal you get on your remortgage.

Lenders generally offer better deals to applicants with lower LTV because they offer more security, and you can get low-interest rates and more affordable monthly repayments.

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How are remortgage valuations carried out?

Lenders can use different methods to carry out property valuations. These include:

• Desktop valuation – True to its name, desktop valuation involves estimating the property’s value from a desk without physically visiting the property. Desktop valuations are computer-automated and involve qualified surveyors using recent comparable sales, property data, and listings of similar properties in your area to determine your property’s value.
• Drive-by valuation – Involves a quick, external valuation where the surveyor visually inspects the property’s condition from the outside. They look for major issues on the walls or roof that can affect the property’s value.

The lender chooses the types of valuation you get depending on how risky they think your property might be.

For example, if your property features non-standard or unusual material like a thatched roof, the lender will likely send a surveyor to do an in-person survey.

If there’s limited up-to-date information on your area online or the lender has never mortgaged in the area before, they can opt for a physical survey.

Desktop valuations are usually the fastest and cheapest for lenders. With most lenders offering free valuations as an incentive for new customers, you’ll likely not see a surveyor knocking at your door.

How much do valuations for remortgage cost?

A remortgage valuation can cost anywhere from £250 to £1,500, depending on the value and size of your property.

Some lenders may require you to pay for the valuation, but free valuations are now common among most lenders as part of the remortgage deal.

Related quick help remortgage guides: 

• Remortaging on maternity leave 
• How soon can I remortgage?
• Shared ownership remortgages
• How long does it take to remortgage?
• How to remortgage for an extension

Remortgage valuation vs. house survey

Mortgage or remortgage valuations are not the same as a house or home-buyer surveys. Valuations for remortgage are usually brief visits for the lender’s benefit and don’t include entering the property.

As a result, it doesn’t provide an accurate report of the house’s condition.

Remortgage valuations are often short reports, around two to three pages long, and don’t flag any maintenance or repairs you need to be aware of.

These reports go straight to the lender, and you may not even see a copy.

A home buyer’s report involves a full structural report and is usually more detailed and in-depth.

Surveyors look at every aspect of the house, assessing the property’s condition inside and outside and highlighting potential defects for the buyer’s benefit.

Although structural valuations don’t normally include mortgage valuations, some home buyer reports do, but you need to check what the lender prefers to avoid incurring double expenses.

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What happens after valuations for a remortgage?

The surveyor will contact the lender directly to give them their opinion after the valuation.

Regardless of the valuation the lender gets, they’ll base their decision on the surveyor’s expert opinion.

If the surveyor agrees with the property value in your remortgage application, the lender will likely process the new mortgage.

However, if the surveyor disagrees with your property value assessment and finds that it’s worth less than what you think it is, you’ll likely get a down valuation.

It involves the lender giving you a revised mortgage offer, and it can put your plans on hold if you’re remortgaging to access money tied up in your property for renovations or home improvements.

Down valuations have recently become more common, with 1 in 30 homes in the UK getting down-valued post-pandemic as lenders cut their offers by an average of £30,000.

Can you challenge the lender’s remortgage valuation?

Challenging the lender’s mortgage valuation can be tricky because it’s up to them to decide whether or not they’ll accept an appeal.

Down valuations usually happen when house prices are out of sync with the current market trend.

For example, house prices in a particular area may fall faster than in other areas, causing a gap between what agents believe a property is worth rather than a surveyor’s expert opinion.

You’ll need robust evidence backing your initial valuation to challenge the lender’s valuation.

It can include at least three examples of nearby, similar properties that recently sold for a price close to the property value on your remortgage application. You can only use properties that have already been sold and are not currently on the market.

Without enough evidence, you can accept the new offer and make up for the shortfall through other means.

You can also try other lenders who use different surveyors, and they could give a valuation that’s closer to your expected property value.

Mortgage brokers can come in handy in such situations by helping your find alternative lenders with better deals.

Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

Check Today's Best Rates >

Tips for remortgage valuations

Here are a few things you can do when applying for a remortgage to help you avoid a down valuation:

• Research the property’s value thoroughly by checking the average sales price of properties in your area on sites like Zoopla. Base the valuation on sales within the last 3 to 6 months for a close reflection of the market value.
• Get an expert opinion from local agents and use an average of the different valuations as a good price.
• If you’re remortgaging with the same lender, check with them, as they likely have the property value on file.

Valuations for Remortgages Final thoughts

Getting an accurate remortgage valuation for your application can help you avoid surprises like down valuations.

Talk to a suitable mortgage broker who can help you find the best deal thanks to their expertise and whole-of-market access.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.