How lenders can make remortgaging simpler
What is incumbent on lenders in the busy remortgaging environment is to take the right steps to make remortgaging simpler, both in terms of process but also by offering borrowers the products and criteria that makes decisions easy.
Technology underpinning everything
The expected rise in the remortgage market is due to the PRA changes brought in five years ago, which saw a lot of borrowers remortgage to avoid any complications or extra difficulties posed by the rule changes.
Borrowers didn’t remortgage five years ago to be welcomed by a more complicated process now. How lenders have ridden those changes and made the process simpler is of huge importance, and making these remortgages the simplest they’ve ever been through technology will play a large role.
For the LendInvest team, we’ve pioneered using Open Banking in the underwriting process and Jumio ID verification to speed up a process. In the back end, integrated searches means the underwriting team has more tools than ever before to speed up cases.
Offering the right products
The market is different now than it was five years ago. Holiday Lets are surging in the UK, and landlords find themselves remortgaging in a climate where the push to net zero is underpinning all areas of government policy, which includes the rental sector.
A broad product range that can support change of purpose and support landlords into the future is essential.
Incentivising landlords to meet their climate obligations through better EPC ratings is also important, which is why our Buy-to-Let products are cheaper for those who have already upgraded their properties, or use our bridging range to do it.
Securing properties for the future
In an uncertain economic climate, stability is increasingly important to landlords and property investors.
This is why we’ve expanded our range to include 7 and 10-year products, so landlords can see out any uncertainty with low-rate products.
As rental yields vary, we continue to offer pay rate and 5% ICR tests so those with higher-yielding properties can benefit from lower rates as we reward sound investment strategies, making this remortgage one for the future.
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