Mortgage sourcing activity is moving towards remortgaging at the same time that brokers continue to research Joint Borrower Sole Proprietor, visa, foreign-national and complex-credit criteria. For borrowers approaching the end of a fixed rate, the message is important: a remortgage is a fresh underwriting event, not simply a renewal of the mortgage arranged several years ago.
Mortgage-market activity shifted towards refinancing during July, with new sourcing data highlighting both rising remortgage demand and the continuing importance of complex borrower circumstances.
According to the latest Twenty7tec Mortgage Market Snapshot, 1,790,196 mortgage searches were recorded during the month.
Overall search volumes were broadly stable, but the composition of that activity changed.
Residential remortgage searches increased 7% month on month and 5% year on year to 700,628.
Residential purchase searches, by contrast, fell 3% during July, while first-time buyer searches declined by 4%.
For mortgage advisers and borrowers, however, the most commercially significant part of the data is not simply that more homeowners are refinancing.
It is the type of mortgage criteria brokers continue to research.
Twenty7tec recorded 700,628 residential remortgage searches in July, an increase of 7% month on month and 5% year on year, while purchase and first-time buyer search activity declined.
Complex Mortgage Criteria Remain in Heavy Demand
Joint Borrower Sole Proprietor, commonly known as JBSP, remained among the most prominent mortgage criteria being researched by advisers.
Searches relating to visa applicants, foreign nationals and borrowers with previous credit issues also continued to feature heavily.
This matters because these are not niche questions confined to a tiny corner of the mortgage market.
They represent situations that advisers are repeatedly encountering when attempting to place real cases.
Previous Twenty7tec market data has shown the same underlying pattern. In May, JBSP enquiries returned to the top of its criteria rankings, alongside searches concerning visas, non-UK nationals, adverse credit and self-employed borrowers.
The persistence of these searches indicates that complexity is becoming an established feature of mortgage advice rather than an occasional exception.
Why the Remortgage and Complex-Criteria Trends Matter Together
The two trends are more important when considered together.
More borrowers are approaching the mortgage market to refinance at exactly the same time that advisers continue to search for solutions involving non-standard residency, family-assisted borrowing and complex credit profiles.
That creates a significant refinancing question.
What happens when the circumstances under which the original mortgage was arranged no longer match the borrower's circumstances today?
A borrower may have taken their existing mortgage three or five years ago.
Since then, their income may have increased.
Their visa may have changed.
They may have become permanently resident.
They may have moved overseas.
Historic adverse credit may have aged.
A business may have grown substantially.
A parent who was originally needed to support affordability may no longer be required.
Alternatively, circumstances may have become more complex and the borrower may now need a lender with more flexible underwriting.
A remortgage is a fresh underwriting event. The lender and structure that worked three or five years ago should not automatically be assumed to remain the most appropriate solution today.
Foreign Nationals Can Have a Very Different Mortgage Profile at Refinance
Foreign-national borrowers provide one of the clearest examples.
A client may originally have obtained their UK mortgage shortly after arriving in the country.
At that point, the lender may have been concerned about the borrower's visa, limited UK credit history, length of residency or the amount of time remaining on their permission to stay.
Those circumstances may look completely different several years later.
The borrower may now have a longer UK employment history, substantially more equity, stronger credit, higher earnings or a different immigration status.
That can potentially change which lenders are available.
A Specialist Mortgage Does Not Necessarily Need to Remain Specialist
This is an important point for borrowers who originally needed a specialist lender.
A specialist mortgage may have been entirely appropriate at the time.
But the factors that made specialist underwriting necessary can change.
A foreign national may have built a longer UK residency record.
A borrower with adverse credit may now have several years of clean payment history.
A self-employed applicant may now have a longer and stronger set of accounts.
A contractor may have a more established income record.
A homeowner who originally needed family support may now be able to demonstrate affordability independently.
In those situations, simply accepting a new deal from the existing specialist lender may overlook a wider part of the market.
The Reverse Can Also Happen
Remortgage complexity does not always reduce over time.
A borrower who originally qualified comfortably for a mainstream mortgage may now have circumstances requiring more specialist underwriting.
They may have become self-employed.
They may now receive a larger proportion of income through dividends, bonuses or commissions.
They may have moved abroad.
Their residency or visa position may have changed.
They may have experienced a temporary credit issue.
Their property may have changed use or become part of a more complicated financial structure.
The next mortgage therefore needs to be assessed against today's circumstances, not the application that succeeded several years ago.
Visa Status Can Materially Change the Lender Search
Visa applicants remain a recurring area of mortgage-criteria research because lender policies can differ materially.
The relevant considerations can include the type of visa held, how long the applicant has lived in the UK, how much time remains on the visa, employment, income, deposit or equity and overall credit profile.
Some lenders are more flexible than others, and criteria can change over time.
A borrower should therefore not assume that the rules applied when their existing mortgage completed remain the same when it comes to refinancing.
Foreign Nationals May Gain Access to More Lenders Over Time
For some international borrowers, time itself can strengthen a mortgage application.
Several additional years of UK residency can create a more established credit footprint.
Employment history may be longer.
The outstanding mortgage may have reduced.
The property may have appreciated in value, creating a lower loan-to-value ratio.
The client's immigration status may also have become more secure.
All of these factors can potentially broaden lender choice.
Expats Can Face the Opposite Journey
A borrower may also have taken their mortgage while living in the UK and subsequently moved overseas.
That can materially change the remortgage.
The client may now earn income in another currency.
They may be tax resident overseas.
The UK property may be retained for personal use, family occupation or investment.
Some lenders that were available when the borrower was UK resident may no longer be appropriate.
Specialist expat or international underwriting may therefore become relevant even though the original mortgage was straightforward.
JBSP Remortgages Can Be Particularly Important for Families
Joint Borrower Sole Proprietor mortgages have become an important form of family-assisted borrowing.
Under a JBSP structure, more than one borrower can be responsible for the mortgage while not all borrowers are registered as owners of the property.
A common use is for a parent to support the affordability of an adult child's mortgage without becoming a joint owner.
But what was necessary at the original purchase may not remain necessary at remortgage.
If the occupying borrower’s income has increased since the original purchase, the remortgage may provide an opportunity to assess whether the supporting parent still needs to remain responsible for the debt.
Removing a Parent From a JBSP Mortgage Can Be a Major Financial Change
Consider a first-time buyer who purchased a property several years ago with parental support.
At the time, their salary may not have been sufficient to support the required mortgage.
A parent was therefore included as a joint borrower.
Several years later, the child's earnings may have risen substantially and the mortgage balance may have fallen.
If affordability now works in the occupying borrower's sole name, a remortgage may potentially allow the parent to be removed from the mortgage.
That can be important for both parties.
The child gains greater financial independence.
The parent may remove a significant mortgage liability from their own financial commitments.
This can be relevant if the parent wants to borrow personally, refinance another property or undertake wider financial planning.
But a JBSP Structure Should Not Be Changed Without Reviewing Affordability
Increased income does not automatically mean the supporting borrower can be removed.
Mortgage affordability rules, stress rates, committed expenditure, dependants, loan term and lender-specific income multiples can all affect the outcome.
The new structure therefore needs to be tested before the existing arrangement is disturbed.
Historic Adverse Credit Can Look Very Different Three Years Later
Credit issues are another area where the passage of time can materially change mortgage eligibility.
A borrower may have needed a specialist lender because of a default, county court judgment, missed payment or other historic credit event.
Several years later, that event may be older, satisfied and followed by a clean payment record.
Different lenders have different policies regarding the age, size and type of adverse credit they will accept.
A borrower who was previously outside mainstream criteria may therefore have a broader set of options when their current fixed period ends.
Do Not Assume the Existing Specialist Lender Is Still the Only Option
This is where remortgage advice can produce value beyond simply securing a new fixed rate.
If the borrower's risk profile has improved, the objective may be to move them into a different segment of the mortgage market.
That does not necessarily mean a mainstream lender will always be cheaper or more appropriate.
Fees, early repayment charges, valuation, loan size, required flexibility and future plans all matter.
But the market should be reviewed rather than assuming the previous solution remains optimal.
Self-Employed Borrowers Can Also Change Lending Categories
A director or self-employed borrower may have had only a short trading history when the original mortgage was arranged.
Three or five years later, the business may have a much stronger record.
Profits may have increased.
Retained earnings may be significant.
The borrower's remuneration strategy may have changed.
Some lenders may assess salary and dividends, while others may be able to consider a broader view of business profitability, depending on their criteria.
A new underwriting assessment can therefore produce a different result from the original application.
Contractors Should Review How Their Income Is Being Assessed
Contractors can face a similar issue.
The most appropriate lender can depend on contract history, day rate, employment structure, gaps between contracts, industry experience and the way income is evidenced.
A contractor who accepted a particular mortgage because it was available several years ago should not assume the same underwriting route remains the strongest option today.
Higher Income Can Create More Than a Better Rate
Income growth can alter the structure of a remortgage in several ways.
It may enable a supporting JBSP borrower to be removed.
It may allow the borrower to shorten the mortgage term.
It may improve affordability for capital raising.
It may enable the client to move away from a specialist lender.
It may also allow a different interest-only or part-and-part structure where appropriate and supported by lender criteria.
The remortgage review should therefore look at the whole debt structure, not simply the interest rate.
Lower LTV Can Change the Available Market
A borrower may also be in a stronger position because their loan-to-value ratio has fallen.
This can happen through scheduled mortgage repayments, property-price growth or additional capital payments.
A mortgage originally arranged at a relatively high LTV may now sit in a materially lower band.
That can affect pricing and lender availability.
For a complex borrower, the combination of stronger equity and a longer track record can be particularly significant.
A Product Transfer and a Remortgage Are Not the Same Exercise
Borrowers approaching the end of a fixed rate may be offered a product transfer by their existing lender.
That can sometimes be convenient and appropriate.
But accepting a product transfer is not the same as testing the wider market.
The existing lender may not reassess whether the client's circumstances now allow access to a different lender, different structure or more appropriate borrowing level.
For straightforward borrowers, that distinction can matter.
For foreign nationals, expats, JBSP families, self-employed clients and borrowers with historic adverse credit, it can matter considerably more.
Complex Remortgage Review
Around six months before a fixed-rate expiry, Willow would typically review:
- the current mortgage balance and fixed-rate end date;
- any early repayment charge period;
- the borrower's current residency and tax position;
- visa type and remaining term where relevant;
- changes in nationality or settlement status;
- UK and overseas income;
- currency of earnings;
- changes in employment or self-employed status;
- company accounts and retained profit where relevant;
- contractor income and current contract history;
- current property value and loan-to-value ratio;
- historic adverse credit and how it has aged;
- whether a JBSP supporting borrower remains necessary;
- whether capital needs to be raised;
- the existing lender's product-transfer options;
- mainstream, specialist and private-bank alternatives;
- fees, valuation costs and legal costs;
- the client's likely circumstances during the next mortgage term.
Six Months Before Expiry Is a Better Starting Point Than Six Weeks
Complex refinancing should not normally be left until the final weeks of a mortgage deal.
A straightforward product transfer may be relatively simple.
A complex remortgage can require substantially more preparation.
Visa documentation may need to be reviewed.
Foreign income may need to be evidenced.
Company accounts or tax documents may need analysis.
Historic credit events may need to be understood.
A JBSP structure may need to be redesigned.
If a supporting parent is being removed, affordability must be tested in the remaining borrower's name.
Starting earlier creates time to solve those issues rather than discovering them when the existing fixed rate is about to expire.
Foreign Income Needs More Than a Simple Salary Figure
For international borrowers and expats, the currency and location of income can be relevant to lender appetite.
A borrower may earn in euros, US dollars, Swiss francs, dirhams or another currency while holding a sterling mortgage.
Lenders can approach foreign-currency income differently.
Some may apply currency adjustments or additional underwriting requirements.
The remortgage review should therefore establish not simply how much the client earns, but where the income arises, in which currency, how it is paid and how consistently it can be evidenced.
Immigration Lawyers Can Identify Mortgage Issues Early
The continuing prominence of visa-related mortgage searches creates a clear opportunity for immigration lawyers and mortgage advisers to work together.
A client's immigration status can have direct consequences for their mortgage options.
A visa extension, route change or settlement application may alter the way lenders assess the borrower.
Conversely, a mortgage fixed-rate expiry may occur while an immigration application is still in progress.
Early coordination can help identify the lenders and documentation requirements before a refinancing deadline becomes urgent.
International Accountants Can See the Problem Before the Broker Does
Accountants advising internationally mobile clients often have detailed knowledge of changes in residency, income and business structure.
Those changes can affect mortgage eligibility.
A client who has moved abroad, changed remuneration structure or begun receiving a larger proportion of income overseas may need a different mortgage approach when their current deal expires.
Identifying the refinancing date early can allow the mortgage strategy to be coordinated with wider tax and financial planning.
Wealth Managers Should Review Family-Assisted Mortgages
JBSP arrangements can also be relevant to wealth-management clients.
Parents may have joined a child's mortgage several years earlier to support affordability.
That liability may still appear within the parent's wider financial position even though the child is now earning substantially more.
A remortgage review can establish whether the family support is still required.
Where it is no longer necessary, restructuring the mortgage can potentially simplify the family's financial position.
Private Client Solicitors May Encounter the Same Structures
Family property arrangements often intersect with legal planning.
Parents may have helped children purchase property through gifts, loans or JBSP borrowing.
Family circumstances may subsequently change through marriage, divorce, inheritance or wider estate planning.
The mortgage structure should be reviewed alongside the legal ownership and family arrangements where relevant.
Estate Agents Can Also Encounter Complex Refinancing
A remortgage is not always disconnected from a property transaction.
A homeowner may want to refinance before moving.
They may need to raise capital for a deposit on another property.
A family may want to restructure an existing mortgage before purchasing an investment or helping a child buy.
Complex mortgage advice can therefore support future purchase activity as well as straightforward refinancing.
The Cheapest Rate Is Not Always the Best Complex Remortgage
Headline pricing matters, but complex borrowers often need to consider more than rate.
A lower-priced mortgage is of little value if the lender will not accept the client's visa.
The same applies if it will not use the relevant foreign income, cannot accommodate the required JBSP structure or takes an unsuitable approach to historic credit.
Fees also need to be considered.
A lower rate with a substantial product fee may not produce the lowest overall cost.
Flexibility, overpayment terms, loan size, mortgage term and future plans can also influence the appropriate recommendation.
Complex Borrowers Need Criteria-Led Advice
Twenty7tec's search data is useful because it demonstrates what mortgage advisers are actually trying to solve.
JBSP, visas, foreign nationals and adverse credit are criteria questions.
They cannot be resolved simply by comparing the lowest advertised mortgage rates.
The first question is whether the lender will accept the borrower and the proposed structure.
Pricing comes after that.
Rising remortgage activity creates an opportunity to reassess borrowers whose circumstances have changed. Some clients may now qualify for a wider lending market; others may need specialist underwriting for the first time.
Why Willow Is Launching the Complex Remortgage Review Approach
For complex borrowers, the most useful time to review the mortgage is before the fixed rate expires, not after.
A six-month review window creates time to understand what has changed since the original mortgage.
Has the client's visa changed?
Have they become a foreign national with a longer UK residency history?
Have they moved abroad and become an expat?
Is a parent still required on a JBSP mortgage?
Has historic adverse credit aged sufficiently to broaden lender choice?
Has a self-employed client's business become stronger?
Has a contractor's income increased?
Has the LTV fallen?
Does the client now need to raise capital?
These are questions that can materially change the next mortgage.
The Objective Is Not Simply to Secure Another Fixed Rate
A remortgage review should not be treated as an administrative exercise.
For complex clients, it can be an opportunity to reposition the borrowing.
A client may be able to move from specialist to more conventional lending.
A family may be able to remove a supporting parent from the mortgage.
A borrower may now have access to a lower LTV band.
An expat may require an international lender.
A client with changed income may need a different underwriting approach.
A borrower with historic credit issues may now have a substantially wider choice of lenders.
The objective is to determine which part of today's lending market best fits the borrower now.
The July Data Is a Warning Against Passive Refinancing
The 7% monthly rise in residential remortgage searches shows that more refinancing decisions are entering the market.
At the same time, the continuing search demand around JBSP, visas, foreign nationals and credit complexity shows why many of those decisions cannot be reduced to a simple rate comparison.
Borrowers' lives change during a three-year or five-year mortgage term.
So do lenders.
Criteria change.
Income changes.
residency changes.
Credit histories change.
Property values change.
Family support requirements change.
The mortgage structure should be capable of changing with them.
Is Your Mortgage Deal Ending Within the Next Six Months?
If you are a foreign national, visa holder, expat, JBSP borrower, company director, contractor or have historic credit issues, your next mortgage should be assessed against your circumstances today — not the criteria that applied when your current loan was arranged. Willow Private Finance can review whether your position now opens access to a wider lending market or requires a different specialist approach.
Explore Complex Property FinanceFrequently Asked Questions
These questions address some of the most common issues facing borrowers whose circumstances have changed since their existing mortgage was arranged.
Can a foreign national remortgage a UK property?
Potentially. Lender criteria for foreign nationals vary according to residency status, visa type, time in the UK, income, equity, credit history and other factors. A borrower who has been in the UK for several years may now present a very different risk profile from when their original mortgage was arranged, so the current lending market should be reviewed afresh.
Can a parent be removed from a JBSP mortgage when remortgaging?
Potentially. If the occupying borrower can now satisfy affordability and lender criteria without the supporting parent, a remortgage may provide an opportunity to restructure the borrowing. This depends on income, loan size, property value, committed expenditure, lender policy and the circumstances of all parties.
Does a visa change affect a remortgage?
It can. Visa type, remaining term, residency history and individual lender policy can affect mortgage eligibility. A borrower whose immigration position has changed since the original mortgage should have current lender criteria reviewed before deciding whether to remain with the existing lender or refinance elsewhere.
Can historic adverse credit become less important at remortgage?
Potentially. Lenders can take different approaches to the age, type, amount and status of historic credit issues. A borrower who previously required specialist lending may have access to a wider range of options once an adverse event has aged or been satisfied and a stronger subsequent payment record has been established.
When should I review a complex remortgage?
Starting around six months before the current fixed or discounted period ends can provide useful time to review residency, visa status, income, credit, property value, JBSP arrangements and the existing mortgage structure. Complex cases can benefit from earlier preparation because additional documentation or specialist underwriting may be required.
