Non Status Remortgages
Non Status Remortgages - Everything You Need To Know
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, receive a pay rise or even have a job downsize, 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. So essentially, the workings of non status remortgages are much the same as any other mortgage.
Why would I need to look into non status remortgages?
Simply, non status remortgages can boost your capacity to borrow if you earn income over and above what you would declare to a standard lender - you may earn bonuses, have a second job or earn commission. You may need this extra borrowing to upsize, as a result of an expanding family, to move to a more desirable area or to stay in your current home or to release equity to build an extension from which to run your new-found business, for a few examples.
What else do I need to know about non status remortgages?
Bear in mind that, since mortgages were regulated by the Financial Services Authority 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 may not necessarily be investigated. 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 25% of the property value. But in the tough market conditions we are currently faced with, most lenders will require deposits in excess of 30%.
Where can I find non status remortgages?
You yourself will have a tough time finding non status remortgages on the high street or in other direct channels. To get hold of non status remortgages you will need a good mortgage adviser who can search the entire UK mortgage market for all the specialised mortgages out there.
