By taking note of some simple tips, you can ensure that home loan re-financing will be successful and achieve your aims: lower monthly payments, lower interest and better loan terms, with the potential of becoming debt-free quicker.
Get Everything in Order First
To get approval for your re-finance home loan on the best possible terms, you should first ensure that you make yourself as eligible as possible for approval. You should get a copy of your credit report, if you don’t already have one, and check your credit history for inconsistencies. If you discover any negative points on the report that you feel should be corrected, you should contact the credit agencies straight away and have the details corrected. A statutory credit report by post should cost you £2 – there are three main credit reference agencies in the UK (Callcredit, Equifax and Experian).
You should also have the required documentation ready. You’re likely to be asked for proof of income. This will be copies of your wage slips, if you are employed, or suitable tax and accounting documents for the self-employed. If you are neither of these, don’t assume you are ineligible – lenders will still consider your application and may require other forms of income proof (eg disability benefit).
You will always need to check with the specific lender which sources they require for approval and what they will accept as proof, as this can vary. But having this documentation to hand to begin with will make the process much easier.
Contact The Lenders
Re-financing is basically swapping a current loan for a new one with better terms. With this being the aim, you should consider as many different lenders as possible and compare loan quotes from all of them, paying particular attention to their interest rates and loan terms, looking out for any hidden charges. This can be a lengthy process, if done the old-fashioned way, so it’s wise to save a great deal of time and effort by contacting a personal loans finder who will be able to do a full search of the current market and find the best deal for you.
There are many different mortgage loans out there to choose from, so consulting a loans expert is the best way to ensure that you are well-informed before you make a decision. Whatever you do, don’t enter into any loan agreement without fully exploring your options, as the results could be seriously damaging to your finances.