Springfords LLP News

To receive our quarterly e-newsletter filled with the kind of news you can use, register here.

Re-mortgaging not so straightforward as it used to be

06 October 2014

A word of warning for those of you who are looking to remortgage/obtain a new mortgage in the near future – it will probably not be as easy and quick as it was last time!

Following the introduction of the new mortgage lending rules from the Financial Conduct Authority, which came into effect from 26 April 2014, Springfords can report our clients are finding the whole mortgage application process an increasingly challenging and stressful experience.

Why should this be?

Well ... mortgage lenders are being much more thorough in investigating your ability to meet your monthly mortgage payments now and in the future.  They're not so interested in the past profitability of your business or your past regular  income ... but far more interested in the future profitability of your business and the net future  income you expect to have left over, after all your  personal household and living expenses have been deducted.

So, the emphasis is more focused on the future rather than the past - indeed, we are seeing more demand from clients to provide mortgage providers with up to date management accounts and future projections to support a mortgage application request.

The process is, in effect, considerably more intrusive and time consuming that the last time you will have applied for a mortgage. 

Our advice to you is:

  • Allow more time to get a mortgage approved than you did last time as the process is much more intensive (indeed it would be a good idea to seek outline approval before making a bid for a property, so you know the mortgage is available to you)
  • Make sure you have done your homework and have all your financials up to date
  • Ensure you have a clean credit history

If you need any help in getting financial information together for a mortgage application then let us know – contact Carol Wright at

Contact Us
  terms & privacy
Part of Baldwins