A homeowner would typically borrow the equivalent amount outstanding on their current loan for a remortgage if they are switching to a new rate. Still, they may borrow more if using the product to release equity. At the moment you can remortgage up to 90% of the property value.
How much can I borrow?
The amount of money you can borrow is determined by your personal circumstances, such as your salary and what your debts are. It all comes down to the amount of money they are able to lend you. While you are solely responsible for repaying the loan, they are required to verify that you can afford to repay it and that you are not overstretching your finances.
Other considerations would be taken into account, such as your loan-to-value (LTV) ratio and the current value of your home. The LTV ratio is a percentage representation of the difference between the amount you want to borrow and the value of your house. You will normally get lower rates if the percentage is lower.
Try out our Mortgage Calculator to see how much you could borrow.
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For more details, call our Mortgage Saving Experts today.
Remortgage Mortgage calculators
Our remortgage calculator will assist you if you’re trying to remortgage, either because your current mortgage offer is coming to an end or because you’d like to borrow a little more.
The remortgage calculators will help you figure out how much you can borrow and how much your monthly payments will be. Even if your current rate hasn’t ended, you should also look into remortgaging since most remortgage deals last between three and six months from the time the mortgage offer has been sent to you. This means you will be able to start your new mortgage up to six months before your current one expires.
Remember that these findings are just meant to give you an idea of what’s possible. Hence, it’s worth consulting with one of our specialist advisors who will walk you through the best remortgage choices available to you based on your specific circumstances.
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Remortgaging Your Home
Remortgaging costs
Remortgaging normally comes with costs. If you leave your current mortgage early, your current lender will charge you an Early Repayment Charge. Your new deal may come with a product or arrangement fee. The following are some of the potential fees:
Product / Arrangement fees
A product fee can be charged on certain mortgages, which can be paid upfront or added to the overall amount borrowed. You’ll have to pay interest if you add the product fee to the amount.
Early Repayment Charges or redemption fees
Since you’ll be leaving your current mortgage to get a new one from a different lender, your current lender might charge you Early Repayment Charges or redemption fees. Most of the time this is not financially viable so speak with one of our advisers to see if it is worthwhile paying these to come out of your existing deal early or if it is better to wait until your deal ends.
Valuation fees
When you remortgage, most lenders provide a valuation free of charge.
Broker fees
If you use a broker, they may charge you a fee , or they are paid a commission by your new lender or they charge you a fee and get paid commission by the mortgage lender.
Mortgage Lenders
FAQs
Can I remortgage my home?
Yes. You may be able to remortgage depending on your financial circumstances.
How much can you remortgage your property for?
Many lenders would consider lending up to 90% loan to value. Many will limit you to 80% or 85% LTV if you are capital raising for certain reasons such as debt consolidation or home improvements. Your income must be adequate to fund the entire mortgage.
Can I remortgage if I own my house outright?
People who own a home with no mortgage (known as an unencumbered property) are in a good position to refinance. You own 100% of the equity in your home if you don't have any outstanding mortgages. The loan to value ratio, or how much you want to borrow as a percentage of the current value of your home, will determine the mortgage options available to you (LTV). You'll have to follow the latest mortgage's requirements. The lenders will mainly look to see that you can afford the mortgage you wish to take no matter how much equity you have in your property. Our mortgage advisors will inform you of this and assist you in locating the best lender for your needs.
Can I remortgage when I’m over 60 or retired?
You can find it difficult to obtain a mortgage once you reach the age of 60. Some lenders are willing to offer borrowers mortgages that they will have to repay even after retirement. Others, on the other hand, will not.
If you're 65, 70, or older, remortgaging can be much more difficult. You might not be able to remortgage if you've retired and no longer have a large enough source of income.
Please speak with one of our mortgage advisors about which lenders are most likely to your accept your application.
Can I remortgage if I’m self-employed or freelance?
Yes. As long as you can prove your income via accounts or the Inland revenue then you can remortgage if you are self-employed. If you are a sole trader, the lenders will assess your “net profit” and if you are a limited company they can generally use salary and dividends. Some lenders do not accept dividends as income so they will use net profit of the limited company, minus corporation tax plus your salary.
Please speak with one of our mortgage advisors about which lenders are most likely to accept applications from seniors.
Can I remortgage my shared ownership home?
The response is most likely. This is a unique type of financing, and you'll need to find a lender that specialises in joint ownership mortgages. Our mortgage advisors are well-versed in Shared Ownership. Our mortgage advisors may also assist you with staircasing, which is the process of purchasing an additional share of a joint ownership house.
Can I remortgage if I have negative equity?
The answer to this is no you cannot remortgage to another lender, but you may be able to change rate with your current lender
Since house prices have fallen after you took out the initial loan, you have negative equity, which means your home is worth less than the size of your mortgage. Speak with us to see if your lender can provide you with a cost-saving retention product. We will also inform you whether or not you can make overpayments to reduce your negative equity.
Can I remortgage with the same lender?
No, you cannot remortgage with your current lender but you can switch your rate or do what they call a “product transfer”. Typically, your current lender will present you with a variety of retention options. We will compare these, as well as their set-up fees (if applicable), to the rest of the market to find the best remortgage deal for you. So why not get in touch and we can run through your options.
Can I remortgage during a fixed term?
The answer is yes, but it may not be the best choice for you. If your current product has Early Repayment Charges, we'll see if we can avoid them by moving your mortgage when it expires. We will advise you on your various choices and go through your criteria to find the best solution for you. If you need to remortgage to unlock equity, rather than incurring an early repayment charge, you could be better off taking a further advance or secured loan for a limited period of time – we will assess your options and go over the numbers with you to find out the best choice. All this guidance is given without charge.
Can I remortgage before my deal ends?
Yes, as mentioned in the previous response, but keep in mind any early repayment charges that may apply. If you think interest rates will rise, you can lock in a new fixed rate as soon as possible. It might be worthwhile looking at remortgaging up to 6 months before your current rate expires. You may also be better off with a product that lasts for a set period of years, such as two years, rather than until a specific expiration date, such as June 30, 2022. This way, you'll get the full two years of use out of the commodity. Not many lenders offer this, but they do exist.
Can I remortgage if I am on maternity leave?
Yes, but lenders' policies on this vary widely. Some will, for example, write to your employer to confirm your return-to-work date and what salary you will be on when you return. A few lenders will require you to return to work within 2/3 months of the start of your new mortgage. Some lenders will demand evidence of financial reserves to cover the maternity leave period. Others will inquire about potential childcare expenses. This can make remortgaging seem difficult and time-consuming, but it is not. Our expert mortgage advisors know who does what and will provide you with sound advice.
Can I remortgage if I am about to change job?
Yes, but you will not have first dibs on the entire industry. If you are about to move jobs, a few lenders will allow you to remortgage if you fulfil all other requirements such as having no more than a two-week gap between employments and you are going into the same sort of role with a new company. Our mortgage advisors will help you decide if you should wait until you have a new job or go ahead and remortgage now.
Can I remortgage if I am on probation period?
Yes, but only in certain circumstances. A few lenders dislike probation periods, but most will accept them on a case-by-case basis. contact us today to see if you can get started.
Can I remortgage using my Child Tax Credit & Working Families Tax Credit?
The short response is almost definitely yes; some lenders would accept 100% of both of these benefits. Others will only accept 50%, and others will refuse to accept anything at all. These policies may have a significant impact on the amount you can borrow.
Can I remortgage using my maintenance payments?
Most lenders can take a percentage of the maintenance payments (ranging from 50% to 100%) if you follow certain conditions, such as if they are made according to a court order or CSA, have a proven track record, and/or have three months' worth of bank statements to prove them. Before we make a recommendation, we will go through the cases with underwriters to ensure everything is in order.
Can I remortgage using my or my dependents disability living allowance?
Some lenders do and some lenders do not accept these benefits.
Can I remortgage with a bad credit history?
In order to answer this question, we would need to see a copy of your credit report. This will be determined by what bad credit you have had and how much the credit was for and how long ago this happened. We will recommend the best company for this since different lenders have massively different criteria around this. You will need to speak with us to get advice as the lenders you will use are not found on the high street and only deal with advisers and not directly with the public.
Can I remortgage if I have a Buy to Let mortgage in the background that is not self-financing?
Yes, most likely, but lender policies on this vary widely. Others would require you to cover the deficit with your income as a financial obligation, while some will require you to cover both mortgages in full with your income.
Can I remortgage to consolidate or pay off debt?
Yes, it's possible. However, when consolidating debt, many lenders limit the amount you can borrow depending on the value of your home. The form of debt you're consolidating also affects the policies. However, keep in mind that consolidating unsecured debt would make it secured against your property which means if you fail to keep up the repayments on the mortgage the lender could repossess your property so you could end up losing your home. Also, if you overpay, spreading the expense over a longer period, even at a lower rate, can end up costing you more in interest. All of this must be taken into account, as this may not be the best option. Our mortgage experts will help you understand your choices.
Can I remortgage to capital raise for home improvements or personal use, i.e., to buy another property?
Many lenders will accept lending up to 90% loan to value if you are remortgaging for home improvements or personal use, such as purchasing another house. Others will set a loan-to-value cap. We will assist you in calculating your LTV and locating the best solution on the market.
Can I remortgage to raise capital to buy someone else out of the property?
Yes. Many lenders would consider lending up to 90% loan to value in this situation, but many will limit you to 80 percent or 85 percent LTV. Your income must be adequate to fund the entire mortgage. For a fee, certain lenders' in-house solicitors will be able to complete the extra-legal work you'll need, referred to as a "transfer of equity." Others will ask you get your own solicitor.
Can I remortgage to capital raise for business use?
Most lenders do not allow this, but some do. Certain limitations may apply, so best to speak with one of our expert advisers to talk you through your situation.
Can I remortgage if I put solar panels on my house?
Most lenders are willing to accept solar-panelled properties as long as you meet certain requirements. For example, some lenders require the lease to include a termination clause and/or a solicitor's confirmation that it complies with CML/BSA requirements. Some lenders will charge a legal fee for this, while others will not.
Can I remortgage a property I have recently purchased?
Some lenders won't consider you for a remortgage unless you've owned your home for at least six months. The good news is that some lenders will allow you to remortgage right away.
Can I remortgage my Help to Buy mortgage?
Help to Buy will not be re-mortgageable by all lenders, but a select few will. Not all lenders offer Help to Buy mortgages. Before you apply your remortgage application, our advisors will find the best choice among the lenders who will approve you. It’s what we do.
Can I borrow 95% of the value of my new build house/flat?
On new build houses and apartments, several lenders limit the loan to value. Just a few lenders would accept loans with a loan-to-value ratio of up to 95%. Find out how much you can borrow by speaking with one of our advisors.
How many years do I need on my lease to remortgage my leasehold flat?
On average, lenders expect you to have 70 years left on your lease when you apply for a mortgage. While some lenders will accept less or work from the years expected at the end of your mortgage term, others will not. Before you remortgage, find out how much it will cost to renew your lease. Please contact us to discuss your options.
Can I remortgage if I have a second charge on the property with another lender?
Around half of mortgage lenders will consider it, but only if it is affordable, and will include a deed of postponement or first payment. Don't assume that your current lender is your only option; we might be able to find you a better deal. You may even be able to remortgage the whole lot onto one mortgage and pay a much lower rate of interest.
Can I remortgage using my bonus payments?
If it is guaranteed, most lenders can use it. Many lenders would consider using 50 percent if it is not guaranteed. Tell us as much as you can about your bonus (for example, your track record and how often it is paid) and we'll figure out your options. Most lenders will consider using your bonus for affordability but how much they will use depends on the lender and their criteria.
Can I remortgage using my overtime or commission?
Typically, lenders would accept 50% - of your three-month average. Just a few lenders can use 100%.
Can I remortgage using my limited companies retained profit?
Many lenders would not take retained earnings into account. However, we do know some lenders who are prepared to assist you. Tell us your situation, and we'll look into your choices because we have direct access to underwriters and lenders alike who may be able to help you.
Can I remortgage if I am an IT contractor?
We know IT contractors have had it touch recently with IR35. In short getting a mortgage for an IT contractor is easy and there are many lenders who are able to help. Give us a shout because we have helped many people like you to get a mortgage.
Can I remortgage if I am on a fixed-term contract?
The simple response is that most lenders will evaluate each case individually. A track record in the same line of work would be needed by the majority of employers. Some would require that the contract be extended at least once.
Can I remortgage if I am a day/weekly rate or zero hours’ contractor?
If you have a clear track record with the same employer, many lenders will consider lending to you. Most lenders will require you to have been on a zero hours contract for a minimum of 12 months. It will be determined by your specific circumstances, so please contact us with as much detail as possible, and we will discuss your options with you.
Can I remortgage if I work for an Umbrella Company?
Approximately half of all mortgage lenders would approve your application if your credit score is good enough. Many of them would regard you as though you were self-employed. In these cases, our direct access to underwriters allows us to make quick decisions.
Can I remortgage if I am a temporary worker or an agency worker?
Your choices may be small, but if you have a track record of at least 12 months, a few lenders may consider you.
Can I remortgage on interest-only?
That is an excellent question. The response to this question is complicated because it depends on your loan-to-value ratio, the amount of income you are on, the amount of equity you have in your home, and the mechanism you use to repay the interest (if any). Call us to find out if you have more choices than you thought.
When I remortgage, will all lenders use my credit score?
Surprisingly, lenders don't all follow the same rules; some look at your credit score, and others look at your credit report. Experian, Equifax, and TransUnion are all similarly split. Most lenders have their own credit scoring system so it will not purely be based on your credit score with one particular credit reference agency. Most lenders credit score but some do not.
Can I remortgage if I missed payments?
If you've skipped a payment on an unsecured loan, it's worth calling us because many mainstream lenders would look into your situation. It's possible that you have more choices than you thought.
Want to know more?
For more details, call our Mortgage Saving Experts today.
