Getting a Non Status Remortgage
The mortgage market caters to a wide range of individual loan requirements, owing to which mortgage lenders have devised innovative mortgage and remortgage loan products for people with bad credit, people with negative equity, people who wish to remortgage, self-employed people, married people, divorcees, and so on.
Non status remortgages are meant for self-employed people or people who cannot prove their income or people with multiple sources of income. In many ways, it is similar to a self-certification remortgage, a remortgage deal in which applicants are required to declare their income and assets.
Importance of Income
Your income is one of the factors mortgage lenders take into consideration while originating your mortgage and remortgage loan simply because it indicates that you are financially fit enough to repay your loan. Mortgage lenders usually hesitate to provide loans to people who cannot prove their income, which makes things difficult for people who cannot prove their income for a number of reasons such as self-employment or multiple streams of income or irregular income.
Thankfully, mortgage lenders have created special remortgage loan products for the benefit of this section of the market. This means that you can still get a mortgage or a remortgage even if you are not employed; you simply have to consider taking a non status or a self-certification remortgage.
A non status remortgage product does not require you to produce salary slips to prove your income. Instead, you can use your bank statements, annual accounts, tax receipts, and so on to prove that you are indeed financially healthy enough to get a remortgage and pay it off.
Shopping for Non Status Remortgages
Finding a non status remortgage product at competitive rates is quite challenging, but if borrowers have a good credit score and can prove that they are financially fit, they will definitely find lenders who will agree to their terms.
You can approach a qualified mortgage advisor or broker who will guide you to the right product. Alternatively, you can shop for non status remortgage deals online and contact a broker once you have found a few interesting deals. You should remember to read everything in fine print before signing on the dotted line.
Downside
Since you aren’t employed and cannot prove your income the way employed people can, mortgage lenders might feel that it is riskier to give you a remortgage loan and might therefore charge you higher. This is the biggest disadvantage of a non status remortgage. In spite of this, you might find mortgage lenders who specialize in providing remortgage products to people in your situation.
Getting a Non Status Remortgage
All you need to do is talk to your current mortgage lender about it. Getting a non status remortgage could be a great way to get a better rate of interest or release equity into cash. But you will have to pay fees such as valuation fees, broker fees, arrangement fees, legal fees, and others. Besides, you might also have to pay penalty for closing your mortgage deal too early.