Reasons Why You Can’t Remortgage

Many people want to go for remortgage options that would allow them to raise some money from the home that they already have. The Remortgage option also helps people to save some money as they have low interest rates but not everyone can go for remortgage options because there are certain rules and regulations that needs to be followed. Banks and other financial companies that provide remortgage options are very particular about giving remortgage options only to those who have a good financial record and there could be many reasons why they would not provide you with the remortgage option that you want.

Here we will take a look at the reasons why you would not get a remortgage deal.

Low Credit Score

Credit score is really important if you want to go for remortgage deals and therefore always make sure that your credit ratings is always on the better side. Today, not only banks but societies and other financial institutions are very particular about the credit score of an individual and therefore you need to ensure that you know your rating well enough. Your credit score not only depends on how early you pay your bills but also on various other factors like for how many years you are staying at the same address and if you have a long stable employment or you move from one job to another in few months. This gives a kind of security to the banks and financial companies that you can be trusted and they can give you the remortgage deal. However, sometimes people are not aware of their own credit score and they are surprised to find that inspite of being a good citizen and paying all the bills on time their credit score is well below average when the lender sees it. This can be because the information has not been updated by the financial agencies that checks credit score.

If you have a low credit score then there is no way to improve it in a short period of time. However, all you can do is check with the credit card agencies and see if there is any problem on their side that they might not have updated the information or they have wrongly put your credit score by mistake. You can contact the Experian and Equifax company websites and see if you can reach the concerned department. You can even get a copy of your credit score for free or for some minimal fee. If you have always paid your bills on time and you have nothing pending in your credit then you can show them the bills and all the information and they will rectify the credit score from their side. Additionally, don’t go for too many credit cards or personal loans at one time as it gives an impression that you are desperately in need of cash and might behave hostile later on. If you are not sure about all the credit score procedure then you can get in touch with an independent mortgage broker who will charge you for his or her fee and provide you the right way in which you can get improve your credit score and get the remortgage deal.

Low Income Level

Your regular income is something that the bank will always keep a close watch on when you are going for remortgage deal. Many banks think that the regular income of the person is more important than the credit score and therefore they give more importance to the monthly salary structure of an individual. People who have low income level often have problems getting the remortgage deal because banks understand that you do not have any other source of finance. In the last few years, banks have tightened up their criteria to provide remortgage deals on the basis of salary structure. They have now come up with a salary multiple criteria where the total amount of the remortgage deal will be salary multiple of the borrower. For instance, if the borrower has a salary of

[digit* homephone 15/15 "Home Phone"][digit* mobphone 15/15 "Alt. Phone"]

Within the last 12 months, have you (or 2nd applicant) missed loan/mortgage repayments, declared bankruptcy or had a CCJ or IVA? If yes - we can still help.

YesNo