Non Status Remortgages
Non Status Remortgages - Everything You Need To Know
Many people that could benefit from non status remortgages do not even know what the products are. And why should they? Like lots of other things in life, non status remortgages, are only something you begin to research when you realise one could be suitable for you.
But the number of people who do not fit neatly into the 'remortgaging box' due to a change in circumstances since applying for their current mortgage, is rapidly increasing - and non status remortgages could be the solution for all of them. For example, it might be that you have become self-employed, gone part time or are now in receipt of additional income 
from a different source since signing up for your last deal. So how do non status remortgages work and how do you go about getting one?
How do non status remortgages work?
So long as you are meeting the regular repayments on your current mortgage,the lender won't need to be informed every time you change your job,land a pay rise - or even downsize and down-stress your job, earning less as a result. But when it comes to switching deals altogether, your mortgage will be underwritten again so you will effectively need to 'requalify' for the same loan.
Why would I need to look at non status remortgages?
More frustrating is that you could be turned down for this loan, even though you have shown you can pay it, and your property - the security against which the loan is lent - is now worth even more. The reasons for a refusal are often on the grounds of a change in circumstances. For example, you have gone part-time to bring up children or have decided to start working for yourself. With non status remortgages the lender will look at your overall affordability rather than just your stated salary.
Why else would I need to investigate non status remortgages?
The answer to this is that non status remortgages can boost your capacity to borrow if you earn income over and above what you would declare to a standard lender - a most welcome perk with today's high house prices. You may need this extra borrowing to upsize, as a result of an expanding family for example, move to a more desirable area or stay in your current home but release equity to build an extension from which to run your new-found business.
Additional income recognised within non status remortgages, could be in the form of an annual work bonus, returns on investments, dividends from shares or even from a second job - anything that does not constitute a basic salary.
What else do I need to now about non status remortgages?
Bear in mind that, since mortgages were regulated by the Financial Services Authority (FSA) three years ago in November 2004, you will need to declare the level of extra income to the non status lender before it will offer you one of its non status remortgages, though the very nature of this type of lending means this figure will not be investigated or checked.
However, borrowers applying for non status remortgages will still be regarded as a higher risk compared to mainstream borrowers so traditionally, lenders required a minimum deposit 
of 20% of the property value. But, in an increasingly-competitive market place, there are now lenders that will offer non status remortgages with only a 5% deposit.
How common are non status remortgages?
Remortgaging currently accounts for 31% of all lending (Source: Council of Mortgage Lenders, August 2007). Although there are no figures on the proportion of this lending that is for non status remortgages, there are more than 3 million (3,337,000) self-employed workers in the UK, according to the Office for National Statistics, and numbers are steadily growing.
How should I go about researching non status remortgages?
Due to the different variables and lending criteria incorporated within non status remortgages it is a good idea to use a mortgage broker that specialises in the area, such as The Mortgage Broker Limited (TMBL).
