expanded Step one
Step one – take stock
There are lots of good reasons to change your mortgage. But there's also a lot to think about before you decide if now's the right time. So it's a good idea to look at your current mortgage to see if it's working for you first.
What mortgage are you on now?
Things change all the time, whether it's your life or the interest rates. So have a look at your mortgage, and think about what you want to get out of a new one.
Is a fixed rate the best idea? Or would a tracker be better? Do you want to fix how much you pay or be more flexible?
If your rate isn't as competitive as it was, you might want to remortgage to save money on your payments each month.
Deal or no deal?
You can remortgage even if your current mortgage term isn't finished. But make sure it's worth it. You may have to pay exit fees or early repayment charges on your old mortgage and application or product fees (PDF, 122KB) for your new mortgage. So you might end up paying more in the long run.
We don't always charge fees on our mortgages, so we could have the one you're looking for.
If your kitchen is crying out for an extension or you fancy remodelling the garden, remortgaging might be the way forward. You can free up some of the equity in your home to help you with the costs.
Know what you're getting in to
When you release equity you borrow more, so you'll be paying more each month. That's a big commitment. So it's really important you do your sums so you know what you can afford. Your first port of call should be to your current mortgage provider, to see if they can help you. If you don't want to continue on this route, then please call us to talk to one of our mortgage advisers about what we can offer. They'll make sure you can afford the new payments and that it's the best option for you. Remember, if you get behind on your payments, you could lose your home.
If your income or outgoings have changed, you might want to change your mortgage too.
Maybe you've managed to save a bit of money lately – you could pay off some of your mortgage and pay less each month. Or you might want a more flexible mortgage so you can pay more every so often.
If you need to tighten your belt, you could go for a better rate or pick a new mortgage with underpayment options.
Step twoFind out more
Find a better mortgage - making the right choice
It's really important you know what's what when you get a mortgage. Here are a few things to think about when you're ready to start looking.
We've got lots to choose from
Whether it's fixed rate or tracker, we've got plenty to choose from.
If it's flexibility you're after, all of our mortgages come with things like overpayments and underpayments*. We've even got fee assisted mortgages to help with the upfront costs.
Is it worth it?
Make sure you'll be better off when you remortgage – do the maths before you sign up.
- Does your current mortgage charge you a mortgage exit fee or early repayment charge?
- What fees will you have for setting up your new mortgage?
- Will you need to pay any legal costs with your new mortgage? Some come with free legal services, but always double check.
Talk to us
When you're ready, give one of our qualified mortgage advisers a call on 0345 111 8010 **.
Step threeFind out more
Step three - make the swap
Once you're clear on what you can afford, and which mortgage you're after, you can start the process. We've put together some information to help you.
To make sure we lend responsibly, we'll ask you for information about you and your finances. That's so we know you're not stretching yourself when you remortgage with us. If you've got everything ready, you can get things moving more quickly.
We need to know:
- your address for the last three years
- details about your job
- your yearly income including any bonuses and overtime
- what you spend every month (like any loan and credit card payments)
- what your household spends every month (on things like food, energy, water and travel)
- details of your property.
What to dig out before you apply
When you apply, we'll ask to see things like:
- three months of payslips - they must be your most recent ones and the most recent must be dated within the the last 35 days
- your latest P60 from your employer
- your last three months of bank statements for your current account
- statements or other proof for any benefits you get (no more than three months old)
- proof of your name and address – like your passport, bank statements or utility bills.
For a full list of the documents we may ask for, and what format we'll accept, please read our Guide to Confirming Income and Identity (PDF, 172KB).
Are you self-employed?
As well as the relevant things from the list above, you'll need to show us your business bank statements for the last 3 years and one of these:
- Your accountant's certificates signed by a suitably qualified accountant
- SA302s and tax year overviews for the last 3 years
- The financial statements for your business for the last 3 years – the most recent year's statement should be signed by a suitably qualified accountant (within the past 18 months).
Need hard evidence?
Sometimes we’ll need to see the original document and for some an online printout or certified copy will do. You can find full details of what we can accept in our guide to Confirming Income and Identity (PDF, 172KB).
Easy as 1, 2, 3
When you're ready to apply for your new mortgage, here's what you need to do.
1. Get a decision in principle
To make sure you can get the mortgage you're after, you need to get a decision in principle first.
As part of the decision in principle, we need to know things like how much money you earn and how you spend your money. From that information, we can decide how much we could lend you.
2. Apply for your mortgage
Once you have your decision in principle, you're ready to complete the rest of your mortgage application. We'll need to check a few more details then we can get things moving for you.
Call 0345 111 8010 ** to talk to one of the team.
3. Make it legally binding
You'll need a solicitor or conveyancer to take care of the legal work for your mortgage application, and a valuer to find out what your property is worth. You may be able to get fee assisted legal services with some mortgages, so always double check what your mortgage includes.
The best laid plans...
Like the weather on a bank holiday, things don't always go to plan. So it's good to be prepared. And we're on hand to help when you need us.
Here are a few things that could put a spanner in the works when you're applying for a mortgage.
Credit check fail
Sainsbury's Bank will do a credit check when you apply. So before you start, look to put any errors right on your credit report and see if there's anything else on there that could trip you up. Just one late payment could make all the difference – even if it was years ago.
MoneySavingExpert.com has a handy guide about how and what to check.
It's really important to get an accurate valuation on your property. If you don't, and the value is different when we value it, it can affect the size of the mortgage you can get and how much you pay every month.