The ultimate Barclays remortgage guide

 As one of the biggest There are plenty of reasons to think about remortgaging to Barclays, in this guide we explore all there is to know, what the process is, benefits and considerations.

Choosing a Barclays Remortgage can be beneficial for several reasons:

• Market Leading Rates: Barclays offers some of the most competitive rates available in the market, which can result in significant savings over the term of your mortgage.
  
• Wide Range of Products: There is a diverse selection of mortgage products available, including fixed rates, variable rates, offset mortgages, and trackers. This variety allows you to choose a mortgage that best suits your financial situation and preferences.
  
• Flexible Terms: Barclays provides flexible mortgage terms to accommodate different needs. Whether you’re looking for a shorter or longer term, you can find options that match your requirements.
  
• Long-Term Lending: They offer lending terms that extend up to 40 years or until the borrower reaches the age of 75. This can be particularly advantageous for those seeking long-term financial planning.
  
• Good Income Multiples: Barclays generally offers income multiples of 4.5-5 times your income, and for high earners (those with incomes above £75,000), they offer up to 5.5 times your income. This can increase your borrowing capacity significantly.
  
• Wide Product Choice: With a variety of mortgage products available, you can select the one that best fits your financial goals. Whether you prefer the stability of fixed rates (usually available for 2, 3, or occasionally 10 years) or the potential savings of variable and tracker rates (often with 2-year fixed periods), there is a product to suit your needs.

In summary, Barclays Remortgages offer competitive rates, a wide range of products, flexible terms, extended lending periods, generous income multiples, and numerous choices in fixed and variable rate options, making them a strong contender for those looking to re-mortgage their property.

Barclays Remortgage criteria for the Employed

Barclays offers competitive remortgage options for employed individuals with specific criteria. Applicants need to have at least 1 month of employment in their current role and a minimum of 6 months of continuous employment. For basic salary verification, Barclays requires 1 month’s payslip, and for variable income like bonuses, overtime, or commission, 3 months’ payslips are necessary.

Barclays Criteria Remortgage for the Self-Employed

For self-employed applicants, Barclays requires a minimum of 2 years of self-employment. Sole traders need to provide 2 years of SA302 forms, while company directors must submit 2 years of company accounts. Barclays typically averages the last 2 years of income or considers the latest year’s income if it shows a decreasing trend.

Barclays Remortgage Process

Start by estimating your home’s value using property websites like Rightmove or consulting estate agents. Next, book an appointment with a mortgage broker to discuss your options. Check your eligibility, including affordability and credit checks, and obtain an Agreement in Principle (AIP) from Barclays.

Submit a full mortgage application and instruct a conveyancer to handle the legal work, either through Barclays’ free legal service or an independent conveyancer. Barclays will then arrange a property valuation, usually within a week of the application.

Once the valuation and document assessments are complete, Barclays will issue a mortgage offer. The conveyancing process, which finalises the legal details, typically takes 4 to 8 weeks.

Barclays Remortgage Rates

Barclays offers a variety of competitive remortgage rates, including fixed, tracker, variable, and offset options. They provide products with tiered fee structures, ranging from no fees to £999. Generally, products with higher fees come with cheaper rates. Brokers can help calculate the overall cost of borrowing to determine the most cost-effective option for your situation.

Costs of Remortgaging with Barclays 

• Exit Fees:

If you leave your current mortgage deal early, you may incur exit fees.

• Arrangement Fees:

Depending on the product choice, arrangement fees can apply. These fees can sometimes be added to the mortgage.

• Solicitor Costs:

If not covered by free legal services, solicitor costs typically range from £400 to £700. Barclays may provide cashback to cover some or all of these costs.

• Mortgage Broker Fees:

Broker fees can vary; they may charge a few hundred pounds or take a commission from the lender.

Valuation Fees:

Valuation fees are usually covered for free by Barclays as an incentive.

Understanding these costs can help you budget effectively and choose the best remortgage deal for your needs.

Do I Need a Valuation for a Barclays Remortgage?

Yes, a valuation is required for a Barclays remortgage. Often, this valuation is automated, with the lender checking the property value online using data from other sold prices in the area. If the online data is insufficient, Barclays may conduct a desktop valuation or arrange a physical valuation.

Valuation costs are typically covered by Barclays as an incentive. The valuation is crucial because it helps determine the equity in your home, which affects the loan-to-value (LTV) ratio. This ratio is essential for assessing the rates and affordability of your remortgage.

How to Improve Your Chances of Success with a Barclays Remortgage

• Maintain a Good Credit Score:

Ensure your credit score is high by paying bills on time, reducing outstanding debts, and correcting any errors on your credit report.

• Stable Income:

Having a stable and regular income improves your affordability assessment. Barclays typically lends 4.5-5.5 times your income, so ensure your income documentation is in order.

• Good Bank Statement Conduct:

Avoid gambling transactions, missed payments, and exceeding your overdraft limit. Demonstrating responsible financial behaviour on your bank statements is crucial.

• Increase Your Deposit:

A larger deposit can lead to better rates, improved affordability assessments, and more leniency on your credit score. Aim to save and provide a deposit that meets or exceeds 5% thresholds.

• Clear Outstanding Debts:

Reducing or clearing existing debts can improve your debt-to-income ratio, making you a more attractive candidate for a remortgage.

• Prepare Documentation:

Have all necessary documents ready, including payslips, bank statements, and identification. This shows preparedness and reliability.

• Avoid Major Financial Changes:

Try to avoid changing jobs or making large purchases before applying for a remortgage, as stability is key.

By following these steps, you can enhance your chances of a successful remortgage application with Barclays.

Required Documents for a Barclays Remortgage

To apply for a Barclays remortgage, you will need the following documents:

• Identification (ID):

Passport, driver’s licence, or another form of government-issued photo ID.

• For Employed Applicants:

Recent payslips (usually 1-3 months).

• For Self-Employed Applicants:

SA302 forms or two years of accounts.

• Bank Statements:

At least 1 month of recent bank statements.

• Existing Mortgage Statement:

The latest statement from your current mortgage provider.

Having these documents ready will streamline the application process and help ensure a smooth and efficient remortgage process.

How Strive Can Help

Strive can assist you with your remortgage by providing access to exclusive Barclays rates, ensuring you benefit from the best possible deals. We will compare these rates with options from the whole market to find the most suitable product for your needs. We handle the entire remortgage process from start to finish, offering comprehensive advice and support at every stage. This includes initial consultations, eligibility checks, application submission, and managing all necessary paperwork and communications, making the process as smooth and stress-free as possible.

FAQs for Barclays Remortgage

Do I need an Agreement in Principle (AIP) to remortgage?

Yes, obtaining an Agreement in Principle (AIP) is an important step in the remortgage process. It gives you an indication of how much you can borrow and shows that you meet Barclays’ initial lending criteria.

What should I do if my property is down valued?

If your property is down valued, it means the valuation came in lower than expected. In this case, you can:

• Negotiate with Barclays to reassess the valuation.
• Consider applying with another lender who might offer a different valuation.
• Increase your equity by paying down a portion of the mortgage.

What should I do if my remortgage application is refused by Barclays?

If Barclays refuses your remortgage application, you can:

• Ask for feedback to understand the reasons for refusal.
• Improve your credit score or financial situation and reapply.
• Consult with a mortgage broker for alternative lenders who may accept your application.

Can I remortgage to pay off my debts?

Yes, you can remortgage to consolidate and pay off your debts. This can simplify your finances and potentially lower your overall interest payments. However, it’s important to ensure you can afford the new mortgage payments.

Can I remortgage for home improvements?

Yes, remortgaging for home improvements is a common reason to remortgage. By releasing equity from your home, you can fund renovations or upgrades, which can also increase your property’s value.

Are Barclays a good lender for remortgaging?

Barclays is considered a good lender for remortgaging due to their competitive rates, wide range of products, flexible terms, and incentives like free valuation and legal fees. They are known for their strong customer service and support throughout the remortgage process.

Contact us today, and we’ll work hard on your behalf to find you a competitive mortgage.

For more information on mortgages for contractors, please contact a member of the Strive team, by emailing [email protected] or call us on 01273 002697.