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.
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.
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.
When you remortgage, most lenders provide a valuation free of charge.
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.