Non Status Remortgages
Non Status Remortgages are just that. It relies on the borrower certifying that they are who they are and the amount of money that they usually earn. The new mortgage or remortgage redeems (or pays off) the previous mortgage and draws down new funds, either for the same amount or usually to extend the loan further.
Non status generally infers that the person taking out the mortgage would most likely be self employed, although this is not always the case. The risk is here that whilst self employed people generally tend
to earn better, there is no sick pay or holiday pay and therefore there is no guarantee that they will always be able to pay the mortgage if disaster strikes. So it's important to get insurance to look after yourself properly. For example, apparently we're all six times more likely to survive a heart attack or cancer and whilst alive, it may take time to recover fully or sadly sometimes not quite - in which case critical illness cover might be considered. Life insurance of course should be taken up by anyone who has a mortgage - it's relatively inexpensive and for those left behind an absolute God Send.
Mortality aside, a non status remortgage may tend to be more expensive just because of these risks. And like anyone who wants to make money, the mortgage companies like to ensure that the easiest money will come from the lowest risk and so on. All rates eventually work out the same: whether you get a low rate and high arrangement fee or vice versa, the amount you pay will be a reflection of the risk that the mortgage company has assessed you as being.
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