Remortgages
Coming to the end of your existing deal or need to refinance to raise funds ? then get expert help to ensure you get the very best deal.
How Much Can I Re-mortgage My House For?
The amount you can borrow when re-mortgaging depends on your personal financial situation and the value of your property. Similar to your initial mortgage, lenders will evaluate your ability to repay the loan, so you’ll need to provide details about your income, and if applicable, your partner’s income.
Your home’s value and how much equity you’ve built up by paying off your current mortgage will play a key role in determining how much you can borrow.
Want to know how much you can re-mortgage for? Try our mortgage calculator and get an instant estimate.
When is the Right Time to Re-mortgage?
Timing is everything when it comes to re-mortgaging. While you can technically re-mortgage at any time, doing so during an existing fixed rate period is not recommended as there is almost certainly costs and penalties involved.. Typically, the best time to consider re-mortgaging is when your initial mortgage term or tie-in period is about to end—usually within the first 2-5 years. At this point, your interest rate may switch to a standard variable rate, and securing a better deal could save you money in the long run.
Some homeowners also remortgage to release equity for things like retirement funds, home improvements, or other financial goals. Just ensure you’re remortgaging at the right time, as doing so during a period of economic uncertainty could make managing repayments more challenging.
How Long Does It Take to Remortgage?
The remortgaging process can take anywhere from a few days to a couple of months, depending on whether you’re staying with your current lender or switching to a new one. If you stick with your current lender, the process is quicker—usually up to a month—since they already have your information and won’t need to reassess your credit.
Switching lenders, however, is more involved. The new lender will perform a credit check, review your application, and handle the legal work to transfer your mortgage. This can take up to two months. To ensure everything goes smoothly, it’s a good idea to start the re-mortgaging process around three months before your current deal expires, giving you ample time to compare deals and get the best option.
How Do You Qualify for a Remortgage?
Qualifying for a remortgage involves more than just finding a great deal. Lenders look at several factors to determine whether you’re eligible:
- Income: Lenders compare your income to your mortgage debt, aiming for a debt-to-income ratio of 38% or lower. Reducing your debts can improve your chances of qualifying if your ratio is higher.
- Loan-to-Value (LTV): Most lenders prefer an LTV of less than 80%, though exceptions exist. The lower your LTV, the better your chances of securing a remortgage.
- Credit Score: A strong credit score can help you qualify for better interest rates. While lenders do offer options for those with lower credit scores, these often come with higher rates.
Lenders will review these aspects, along with your overall financial health, before deciding whether to approve your remortgage.
Product Transfer – A Quick and Cost-Effective Solution
If you’re not looking to borrow additional funds, a product transfer might be your best option. We always compare offers from your current lender, and if that’s the most suitable option, we’ll recommend a product transfer—this is typically the fastest and most affordable way to secure a new deal.
The best part? We’ll handle the product transfer process for you at no extra cost. It’s also an excellent opportunity to review your protection arrangements with our advisors, who offer a full mortgage and protection health check to ensure you’re in the best possible position moving forward.
Given that your mortgage is a major household expense, regularly reviewing your options ensures you always get the best deal suited to your personal circumstances.
Your home (or property) may be repossessed if you do not keep up with repayments on your mortgage or any other debt secured on it.
