If you own an unencumbered property, either through paying a mortgage, paying for it in full or inheriting it, you’re potentially in a pretty advantageous position if you’re thinking about remortgaging.
My mortgage is almost paid off, can I remortgage?
If you’re nearing the end of your contract and you own a substantial amount of equity, you could be in a strong place to remortgage. Usually, the more equity you own, the better as this provides more security to the lender.
A broker can calculate your new mortgage repayments with a range of lenders to compare which one would be the most suitable for you, being mindful of any early-exit fees or charges that could affect this.
They’ll contact your current mortgage lender to negotiate a deal and if a better one is found elsewhere, they’ll manage the process on your behalf.
Remortgaging near the end of your contract to access cash is common for many homeowners but it’s still a big decision that could affect your finances for years to come, so take your time, weigh up your options and work with professionals.
Can I get an unencumbered mortgage with a bad credit history?
Having bad credit prevents a lot of people from successfully applying for a remortgage but often it’s the fear of being rejected rather than the lack of lenders available.
Not many people are aware that the severity of your credit issues and the date of when they occurred can influence a lender’s decision to accept you or not.
Some may accept you if there has been a long gap between your last credit incident and now, so if you are thinking of applying for an unencumbered mortgage, avoid missing payments for credit agreements, utility bills and any other financial obligations you have.
Your Mortgage Hut broker can also help you build your credit score to access better rates with helpful tips and advice about Experian Boost.
How to remortgage an unencumbered property
Find a qualified mortgage broker - they should have a Certificate in Mortgage Advice and Practice (CeMAP)
Prepare the documents you’ll need for a mortgage application, including bank statements, identification and proof of income in the form of payslips or tax returns
Find out how much you’re eligible to borrow without affecting your credit score (your own circumstances such as your age, income and even your number of dependants can affect how much you can borrow)
Have your broker compare the lenders and banks in the UK and present you with the best options, all while explaining both the pros and cons of the agreement
If then, you’re happy to proceed with an unencumbered mortgage application, ask your broker to prepare the paperwork and submit it
From there, they’ll manage the process, even chasing up other parties involved with the process to help you meet your completion date
Can I borrow against the home that I own outright?
Let’s find out. Contact a broker today to have your eligibility checked and discuss the pros and cons of each of your options.
Lots of people decide to get a mortgage for a property they already own outright and whatever your reason when you speak to a Mortgage Hut broker, you can feel confident that you’re in the company of a non-judgemental expert, who genuinely enjoys helping.
