Joint Remortgages
When you take out a remortgage, what you are really doing is getting a now mortgage on the same property as your current one, using the funds from the new one to pay the current one off, and then being left only with the new one. The range of deals that you can therefore get on a remortgage are similar to those that you get on mortgages.
If you have joint mortgage, you can therefore shop around for a joint remortgage, with many deals available for you to choose between. The main difference between a mortgage and a joint mortgage is that both or all of the people involved are considered responsible for meeting the remortgage payments, and the same will therefore apply to a joint remortgage.
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In many cases, a lender will want to carry out credit checks before giving you any lending, particularly the substantial amounts of money involved in remortgages. For this reason both or all of the people participating in the joint remortgage will be subject to these checks. If any of you have had credit problems in the past such as an iva, this may affect the range of deals that are available to you.
In the same way, the lender may want to take steps to verify that you and everyone involved in the joint mortgage are going to be capable of making the remortgage payments. To do this they will often check bank accounts, statements etc and any other documentation you have to prove your income.
The lender will not generally care how much of the payments are made by each member of the joint remortgage, as long as you meet the payments between you. When they check your income, they will therefore be checking that the totals add up, i.e. that between you, you make enough to afford the remortgage.
Options
Many people find that teaming up for a joint mortgage gives them access to much higher amounts of lending than they’d get on their own, thanks to their combined amounts of income, and the same applies to joint remortgages. If you’re looking to obtain funds through a remortgage, you may find that as partners you’ll have access to substantial borrowing on this basis.
When you’re considering a joint remortgage, it is imperative that every member of the partnership understands the terms of the deal, and exactly what will be required of them to meet the payments.