Remortgaging can be the right option if you’re coming to the end of your introductory or fixed-rate deal period and want to borrow more or save money by reducing monthly repayments.

If you’re wondering how much can I remortgage my house for, how much remortgage can I get UK, or how much can I borrow for remortgage, you’ve come to the right place.

You can easily use a remortgage UK calculator to see how much you can remortgage your house for, but there are various factors you need to consider.

Read on to learn more about how much you can borrow, how remortgaging works, when you should consider remortgaging, and the costs.

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How Much Remortgage Can I Get UK?

You can usually borrow the amount outstanding on your mortgage when remortgaging or more if you release the equity tied up in your property.

Lenders will consider various factors when deciding how much you can remortgage your house for, including:

Your Property Value

The current market value of your property will influence the amount you can remortgage your house for.

The lender will assess your property to ensure it’s worth what you say before approving you for a remortgage.

Generally, the higher the property value, the more you can borrow.

Personal Circumstances

The lender will look at your circumstances, like your income, monthly outgoings, and credit rating, to determine how much you can afford to borrow.

You’ll likely be able to borrow more if you have good credit and income with low monthly expenditures.

The Loan to Value (LTV) Ratio

The loan to value refers to the amount you want to borrow as a percentage of the property’s value.

Lenders apply different limits or maximum LTVs and usually offer better deals for borrowers with low LTVs in the 60% to 65% range.

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Should I Remortgage My House?

Remortgaging involves changing your current mortgage without changing your home, and you can do this with your current lender or a new one.

Remortgaging with your existing lender is usually called a product transfer, and it can make things easier and quicker and cut out the need for legal support.

Common reasons for remortgaging include:

A Better Deal

When your introductory or fixed-term deal ends, you move onto your lender’s standard variable rate (SVR), which is usually higher.

You can remortgage to avoid this higher rate, and nothing stops you from moving to a better deal and saving on interest costs.

You can start shopping around for a new deal around three to six months before your current deal ends.

Releasing Equity

The level of equity you own in the property will go up as you repay the mortgage and if the value of the property increases.

You can release this equity by remortgaging and get the cash you need for any number of needs, including home improvements and repairs, an extension, raising capital for a new car, motorbike, caravan or motorhome, school fees, medical or legal bills, or travel and holidays.

If you have significant equity, you can get enough to buy a second or holiday home or put down a deposit, buy land, or consolidate debt.

How Does the LTV Affect How Much I Can Borrow with A Remortgage?

Mortgage deals are usually based on a loan-to-value ratio, and the lower your LTV, the more equity you own, meaning you can borrow more.

For example, let’s assume you bought your house for £250,000 with a £200,000 mortgage, and the mortgage you owe has fallen to £180,000 due to repayments while the value of the property has increased to £300,000.

This means the equity you own in the property has increased from £50,000 to £120,000.

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You can remortgage for a more significant amount than you owe, such as £200,000, working out at a loan-to-value ratio of = (200,000/300,000 x 100) = 66%.

You’ll be borrowing at a lower LTV than when you first bought the house, gaining a cheaper mortgage rate and lower repayments while gaining £20,000 (£200,000 – £180,000) to spend however you like.

Releasing cash by remortgaging is suitable when you have significant equity in the property to ensure it doesn’t dramatically change your LTV.

Costs to Consider When Thinking About How Much You Can Remortgage Your House for

Early Repayment Charges (ERCs)

Lenders can charge ERCs if you’re remortgaging during your current mortgage’s tie-in or fixed period.

The ERC is usually a percentage of the outstanding balance and can be significant, so it may be better to wait until the initial period ends before you can remortgage.

Exit and Arrangement Fee

Some lenders can charge an exit fee as a separate item to the ERC to cover the administration costs of closing your account.

Most mortgages also charge an arrangement or product fee just to get the loan, which can be added to the loan or paid upfront.

It typically costs around £1,000, with low-interest rates attracting higher fees.

Legal Fees and Valuation

When remortgaging, a solicitor must remove the old lender and register the new one on the property deeds.

The lender will also require a property valuation to confirm the amount you can borrow.

A remortgage valuation can cost anywhere from £250 to £1,500, depending on the value and size of your property.

Some lenders may require you to pay for these fees, but incentives, where the new lender covers such costs, are now common as part of the remortgage deal.

Higher Monthly Payments

If you’re remortgaging to borrow more money, you’re increasing the size of your loan, which can lead to higher monthly payments depending on the deal.

You need to ensure you can afford the increased repayments to avoid missed payments and defaults that can risk the loss of your home.

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How Much Can I Remortgage My House For? Final Thoughts

If you’re wondering how much can I borrow for a remortgage, consider the property value, your circumstances, and the loan-to-value ratio.

Remortgaging can be an excellent way to save money on a better deal and release the cash tied up in your house.

Consulting a qualified broker specialising in remortgages can help you get the best possible deal for your situation.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

If you own your property outright, it means it’s mortgage-free and unencumbered.

Whether you inherited it, paid for it in full with cash or finished paying a mortgage, it puts you in a strong position for remortgaging.

Here’s everything you need to know about remortgaging a house you own outright.

Can I Remortgage A House I Own Outright?

Yes. You can easily remortgage a house you own outright and access a lump sum of money at low rates.

It’s usually called an encumbered remortgage because the property isn’t associated with any existing debts, restrictions, loans or charges.

Since you own 100% of the equity on the property, the house is mortgage-free, so you’re not really remortgaging, but most lenders refer to the process as remortgaging.

You’ll be in an ideal position for a remortgage and get a wide range of excellent deals, provided you meet the eligibility criteria.

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How Do You Remortgage A House You Own Outright?

Remortgaging a house you own outright works in the same way as standard mortgages but with a few differences.

When applying for standard mortgages, you must put down a deposit and borrow the remaining balance to make a purchase.

The lender calculates the rates you’ll pay based on the property’s value and deposit size. The higher the deposit, the lower the amount you need to borrow and the lower your loan-to-value (LTV) ratio.

Unencumbered remortgages don’t require any deposit.

The lender will conduct standard assessments like affordability and income and offer you borrowing rates based on the LTV, which is influenced by how much money you want to release from the property.

For example, if you want to borrow £100,000 and your house has a market value of £500,000, you divide the loan by the property’s value and multiply the figure by 100 to work out the loan to value.

LTV = 100,000/500,000 x 100 = 20%

This means you can borrow up to 80% of the value of your home. The lower the LTV, the cheaper the rates you get from lenders.

Considerations When Remortgaging A House You Own Outright

Although you’re in a strong position when you own your property outright, raising capital by releasing some of the equity can carry some risks.

Some things you should think about include the following:

Reasons for Remortgaging

Your reason for remortgaging a house you own outright should make financial sense, and lenders will; want to know what you intend to do with the money.

The funds can be useful for purchasing other properties, home improvements or repairs, consolidating debt, paying legal fees and making necessary purchases and investments.

New Commitment

Remortgaging your house entails taking on a new financial commitment.

Lenders will assess your affordability, and you must ensure you’re comfortable with the monthly repayments.

Risk

All mortgages have a risk, and you can lose your home if you fail to keep up with repayments.

Even if you’re financially stable now, ensure you consider whether anything is likely to change in future that can make it difficult to repay.

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Can I Remortgage A House I Own Outright With Bad Credit?

Yes. Although bad credit can limit the number of lenders willing to lend to you, it’s not impossible.

The type of credit problems you have and how long ago they occurred can determine the type of deal you get.

Defaults and late payments are less severe than repossession and bankruptcy, and the more recent the credit issues are, the more difficult it can be to get approved.

You’ll need a specialised lender who considers borrowers with bad credit, and you can access them through mortgage brokers.

The lender may charge a higher interest rate because of your credit issues, but having an unencumbered house as security can help reduce the risk for the lender and give you access to better terms.

Can I Remortgage An Inherited House?

Yes. If you’ve inherited an unencumbered house, remortgaging should be fairly straightforward, provided you meet the eligibility and affordability criteria.

You must ensure the process of transferring ownership has been completed, and there are no complications like charges on the house, restrictions or family disputes.

Most lenders will require that you own the property for at least six months before remortgaging.

Can I Remortgage A House I Own If I’m Retired?

Although your options may be limited, you can still remortgage a house you own when you’re retired. Many lenders are reluctant to offer loans when you’re near or over the age of retirement.

Lenders may be concerned about affordability unless your pension is sufficient to repay the amount you borrow.

You may want to consider an equity release, as it allows you to borrow and repay later instead of making monthly repayments.

The loan is usually repaid when the property is sold after death or moving into a care home.

A mortgage advisor can help you understand your options so you can choose the most favourable deal.

Eligibility To Remortgage A House You Own Outright

The deal you qualify for will depend on your circumstances, and most lenders will want to establish that you can comfortably repay by looking at the following:

• Your credit history
• Age
• Debt to income ratio
• Affordability based on your income and monthly outgoings, including any other debts
• Income stability
• The type of property you want to remortgage
• The number of dependants

Process Of Remortgaging A. House You Own Outright

1. Start by consulting a qualified mortgage broker or advisor and determine how much you can borrow.
2. Have your broker compare different lenders and present you with the best options.
3. Prepare the documents you’ll need for the application, including proof of identification and income like bank statements, payslips or tax returns.
4. Once you find a suitable offer, ask the mortgage broker to prepare and submit the paperwork. The broker will also manage the process and ensure you meet your completion date.

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I Own My House Outright, Can I Remortgage? Final Thoughts

Remortgaging a house you own outright should be straightforward, and you’ll be in a good position to get excellent deals.

A qualified mortgage broker can connect you to lenders with favourable deals no matter your circumstances and ensure the process is smooth.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Wanting to remortgage on maternity leave? Here we cover the whole process and what it entails. 

Thousands of births are recorded in the UK each year, and getting a remortgage on maternity leave is a common concern.

Getting a remortgage on maternity leave isn’t always straightforward and can cause worry and confusion, which is the last thing you need with a baby on the way.

However, with the right advice, it doesn’t have to be.

This guide explores how maternity leave can affect your remortgage application and the best way to approach it to ensure a successful remortgage on maternity leave.

How does maternity leave impact remortgaging?

Mortgages have direct linkages to how much money you earn, and the lender will consider things like maternity leaves when assessing your affordability.

When you’re on maternity leave, you’ll likely be on reduced pay for some or all of that period, putting you in a different financial position.

As a part of responsible lending, lenders must ensure your affordability by assessing your monthly income against your household’s financial outgoings, including mortgage repayments.

When remortgaging on maternity leave, some lenders will assess your affordability based on the reduced income figure, making it challenging to meet the affordability criteria.

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Can you remortgage on maternity leave?

Yes. Getting a remortgage on maternity leave is possible, provided you find the right lender.

Some lenders can offer a remortgage based on a varying percentage of your regular salary, or your pay on maternity leave, reducing the amount you can borrow.

To get the best deal, you need a lender who will assess you based on your full salary before going on maternity leave.

You can increase your chances of finding such lenders by applying for remortgages through a mortgage broker who specialises in getting mortgages for applicants on maternity leave or those about to go on one.

Related quick help remortgage guides: 

• Remortaging on maternity leave 
• How soon can I remortgage?
• Shared ownership remortgages
• How long does it take to remortgage?
• How to remortgage for an extension

Informing lenders if you’re pregnant or going on maternity leave

While lenders are unlikely to directly ask if you’re currently on maternity leave or whether you will be soon, it’s essential to be upfront and honest in your application because it will significantly impact your finances.

The application will likely ask whether you expect any material changes to your financial circumstances or anything that can affect your ability to keep up with mortgage repayments.

Having a baby counts as such a change because it will be an extra mouth to feed and clothe and will affect your finances and the lender’s assessment.

You also need to inform the lender if you’re applying for a remortgage when going on maternity leave.

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It may not be apparent on recent payslips, so you need to explain to the lender that your income is about to be reduced for a specific period. To ensure they make an informed decision.

Failing to provide material information or lying may count as non-disclosure and can get you accused of mortgage fraud, even if you did it unintentionally.

Providing all the information about your financial situation ensures you get a remortgage deal that works for you and can afford comfortably even after the baby comes.

How to get a remortgage on maternity leave

Follow these essential tips to ensure your application for a remortgage on maternity leave is successful:

Get a reference letter from your employer

It’s a good idea to show lenders that your decrease in salary is temporary and you’ll soon be back to full salary.

Ask your employer to write a reference letter to give the lender confidence and support your remortgage application. The letter should confirm the following:

• You’ll be returning to work.
• Your return date.
• The hours you’ll be working.
• Your salary.

This is enough assurance for many lenders to proceed with the application using your previous or projected salary.

If you’re going to return to work part-time, the lender will decide based on the new salary.

Adjust your budget

Consider how going on maternity leave and having a child will affect your finances, and adjust your budget to ensure affordability.

It will help you decide whether you can afford the new rates of the remortgage with the growing family.

You’ll need to show the lender you can cover monthly repayments on the reduced maternity pay if you want them to consider a remortgage based on your regular salary.

It can include evidence of extra income like your partner’s salary, money in a savings account or gifts from family members.

You can also show lenders you’ve considered how much you’ll spend on childcare after returning to work.

It can be something like a family member caring for your child for free, and it shows them you’re thinking long-term.

Use a mortgage broker

A suitable broker with experience working with applicants on maternity leave can provide expert guidance to smoothen the remortgage process.

They’ll help you explore the entire market to find a lender willing to remortgage based on your full salary and circumstances.

A broker with whole-of-market access will know the exact lenders who can help you remortgage on maternity leave with little to no caveats.

It will ensure you don’t waste time with unsuitable lenders or damage your credit score by making multiple applications that get declined.

Best of all, the best brokers have deep working relationships with mortgage providers and can negotiate the most favourable deal on your behalf.

Can you remortgage on maternity leave when self-employed?

Yes. But your circumstances will influence whether or not the remortgage process is straightforward.

The lender will need to know how going on maternity leave will affect your income. Such effects usually depend on your involvement in the business’s day-to-day operations.

Your income will be significantly impacted if the business can’t function without you being there.

Getting a remortgage will be simpler if you can show lenders you have employees who can take care of the business during your leave and not affect your income.

Lenders will be less willing to grant a remortgage if you’re a sole trader or the business can’t function without you.

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Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

Remortgage On Maternity Leave Final Thoughts

Finding the right lender is critical when you want to remortgage on maternity leave.

The last thing you want is to get a remortgage based on a percentage of your full-time salary or get rejected after approaching multiple lenders.

To ensure you get a suitable lender the first time, ensure you use a broker when applying for a remortgage on maternity leave.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

If you recently bought a property and want to remortgage, most lenders will only accept remortgage applications after you’ve owned the property for at least six months.

Lenders calculate the six-month rule from the day you register your name on the title deeds in the Land Registry.

However, you can still remortgage your home sooner than six months after buying if you need to release funds sooner or move to a better deal.

Here’s everything you need to know about how soon you can remortgage.

What is the six-month mortgage rule?

The six-month rule is not a rule or a law. It’s more of a guidance initially issued by the Council of Mortgage Lenders (CML) that encourages lenders not to accept applications against a property until the owner is registered at the Land Registry for at least six months.

The guidance applies to UK lenders, conveyancers and solicitors where mortgage applications are made or properties owned for less than six months.

Although ownership begins the day your registration enters on the title deeds at the Land Registry, the amendment happens several months later.

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Each lender interprets it differently and applies it to their lending criteria since there are no hard rules.

Some choose to lend after six months, others extend it to 12 months, and some even lend without requiring a minimum ownership period.

Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

What is the purpose of waiting six months?

The main aim of the six-month rule is to prevent money laundering and mortgage fraud.

Before the 2008 crash, you could purchase properties using a mortgage or undeclared cash and apply for a remortgage with a new lender immediately after completion using a higher valuation than the purchase price.

It was easy for people intent on money laundering to pay cash for properties and immediately remortgage to get the money back out.

Lenders were left fully exposed, and during the crash, when properties were repossessed, they were found to be worth less than the outstanding mortgage, resulting in huge losses for banks and lenders.

The rule to wait six months was necessary to stop such issues and back-to-back transactions.

Can you remortgage within six months?

Yes. Various options allow you to remortgage a property shortly after purchasing it, although it can be more challenging than when you remortgage later.

You’ll need to find a lender who doesn’t require you to wait six months or longer to be able to remortgage.

You also need to consider how much it will cost to exit your current mortgage when deciding whether remortgaging is the best option for you.

If you already agreed to a discounted rate or a five-year, three-year or two-year fixed-rate mortgage, it will likely be costly to leave before the end of that period.

Reasons for remortgaging sooner

There are many genuine and valid reasons you may want to remortgage within a short period after taking ownership of the property. These include:

• You recently inherited a property and want to release some equity or capital.
• Your financial situation has suddenly changed, and you want to remortgage and release some equity.
• You initially chose a variable-rate mortgage, and a rapid rise in interest rates doesn’t suit your current needs.
• You’ve finished renovations, raised the property value, and want to borrow against the new value.
• You purchased the property using money from friends and family to speed up the process and want to pay them back.
• You bought the property using a bridging loan and wish to repay it.
• You want to increase your borrowing to finance debt consolidation or home improvements.
• You purchased the property at auction and want a long-term mortgage.
• You initially bought an uninhabitable property, and it is now ready for a mainstream mortgage after some developments.

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Requirements to remortgage sooner

Several lenders will consider your remortgage application within six months, but it will be scrutinised and only approved in some instances.

Most eligibility requirements are similar to other mortgages, but you’ll need to provide additional documentation depending on why you’re remortgaging.

These include:

• A purchase audit trail.
• A solicitor’s confirmation that you’ve requested an update at the Land Registry if you’re not yet listed as the owner.
• A completion statement confirming the property’s original purchase price
• Evidence for increased valuation, such as completed renovations or developments.

Related quick help remortgage guides: 

• Remortaging on maternity leave 
• How soon can I remortgage?
• Shared ownership remortgages
• How long does it take to remortgage?
• How to remortgage for an extension

A broker can help you remortgage sooner

You need a specialised broker to help you remortgage soon after buying a property because such deals are rare, and not all brokers have experience with such transactions.

Some reasons why you need a broker include:

·       Case preparation

Lenders make decisions on remortgage applications made within short periods after ownership on a case-by-case basis.

It involves explaining why you need to remortgage so soon. A suitable broker will know what the lender wants and help you make your application on the best terms.

·       Access to deals

Many deals and options on remortgaging within six months are unavailable from high-street lenders like banks.

A broker will help you access broker-only deals from specialised lenders active in the market. They know which lenders impose or don’t impose the waiting period and help you compare the best deals.

·       Personalised advice

Exiting the current mortgage can be costly, and a broker will help compare such costs against the savings you might make with a new deal.

They’ll weigh your options and provide personalised advice on whether remortgaging now is the best option or if you should wait.

What does a day-one remortgage mean?

Day one remortgages are not mortgage products. It refers to remortgaging a property you’ve just bought, and although it can include owning it for only one day, it doesn’t have to be the first day of property ownership.

It’s only suitable if you’ve owned the property for less than six months and have a valid reason for a remortgage.

Most people take out day-one remortgages on properties that need renovations and improvements, like adding bathrooms and kitchens to bring them up to standard.

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How Soon Can I Remortgage? Final thoughts

The market for remortgaging soon after buying a property is limited and includes many specialist lenders.

As a result, it’s better to seek expert advice from brokers experienced in such cases to help you find the best deal.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Shared ownership mortgages provide an opportunity for aspiring homeowners and first-time buyers who find it challenging to purchase a property outright on the open market to step onto the property ladder.

A shared ownership remortgage offers an excellent pathway to either increase your property share or secure more favourable terms on your existing loan.

Here’s a comprehensive guide to shared ownership remortgages to help you navigate the process and understand what lies ahead.

What are shared ownership remortgages?

Shared ownership remortgages allow you to increase your ownership percentage in a property initially purchased through the shared ownership scheme.

To fully grasp the concept of shared ownership remortgages, it’s essential to understand the basics of shared ownership mortgages.

Contrary to what the name might suggest, shared ownership doesn’t mean co-habiting with others. Rather, it involves sharing property ownership with a housing association.

This government-supported initiative allows qualifying buyers to purchase a percentage share of a leasehold property rather than paying the full market price.

Since you only need to secure a mortgage for your chosen share, the required deposit is significantly lower compared to purchasing the entire property.

Your initial ownership share typically ranges from 10% to 75%, and you pay rent to a housing association or local authority on the remaining portion.

Through the remortgage process, shared ownership remortgages enable you to gradually increase your shares up to 100% until you achieve full ownership, known as staircasing.

A shared ownership remortgage might also involve negotiating new terms with a lender for your owned portion of the property.

Related quick help remortgage guides:

• Remortaging on maternity leave
• How soon can I remortgage?
• Shared ownership remortgages
• How long does it take to remortgage?
• How to remortgage for an extension

Shared ownership staircasing

Staircasing in shared ownership involves gradually increasing your percentage ownership of the property, with the potential to achieve full ownership.

As you purchase additional shares, your rent payments decrease while your mortgage payments increase proportionally.

Upon reaching 100% ownership, you’ll only be responsible for mortgage payments, service charges, and ground rent, with no further rent obligations.

Recent staircasing regulations now permit annual 1% increases for 15 years from the initial purchase date.

You can fund this 1% increase through personal savings, requesting a further advance from your current lender, or pursuing a shared ownership remortgage.

Further advances: This option involves your existing lender providing additional funds to increase your property share. Shared ownership remortgage: If your current lender’s terms aren’t suitable, you can switch to a new lender, securing a larger loan to repay the existing mortgage and purchase additional shares with the extra funds.

Previously, homeowners were limited to three applications for additional shares, with the final application resulting in complete property ownership.

Recent policy amendments have removed restrictions on the number of staircasing applications for many properties.

Shared ownership remortgaging process

1. Consult your existing lender

Get in touch with your current mortgage provider to obtain a redemption quote and explore their available options.

Many lenders provide competitive rates to existing customers considering switching, and staying with your current provider can streamline the shared ownership remortgage process whilst reducing associated costs.

Nevertheless, it’s prudent to explore the broader market, even if your current lender’s offer seems attractive.

2. Contact your housing association

Terms and conditions for shared ownership can vary depending on your specific housing association or local council scheme.

It’s essential to notify your housing association of your remortgage intentions, as they must approve the arrangement and may levy a small administrative fee.

They need to verify that the new mortgage meets their criteria and requirements.

Some properties come with specific restrictions, such as not being eligible for use as a second home, so thoroughly review your lease terms for any constraints.

3. Property valuation

Following your housing association notification, they typically require a property valuation to determine your share’s worth.

This valuation helps establish your property equity position and the value of any additional shares you’re considering purchasing.

Most housing associations only accept valuations from surveyors accredited by the Royal Institution of Chartered Surveyors (RICS).

Make sure you select an RICS-qualified surveyor for the valuation. Housing associations usually provide a list of approved surveyors.

Remember that valuations are valid for just three months, so ensure you’re prepared to complete your remortgage within this timeframe.

If the valuation expires, you’ll need to arrange another one, incurring additional expenses.

4. Decision time

If you opt to change lenders, the remortgage process mirrors a new mortgage application. You’ll need to provide your current mortgage statement, comprehensive details, income verification and payment history.

The new lender will perform a credit check to verify you have no adverse credit history, such as defaults, missed payments or CCJs.

Submit all required documentation promptly to prevent unnecessary delays in the process.

The remortgage application typically takes between four to eight weeks. Your solicitor can coordinate completion to coincide with your current mortgage deal’s expiry, helping you avoid early redemption penalties.

Once the legal process concludes, you can proceed with your new mortgage provider. When approaching the end of your new term or three months before, you can initiate the process again.

Related reading:

• Reasons for remortgaging
• Remortgaging to release equity
• Remortgaging to buy another property
• Remortgaging with bad credit
• Remortgaging for home improvements
• I own my house outright can I remortgage?
• Capital raising mortgages

Costs involved in shared ownership remortgages

The shared ownership remortgage process typically involves higher costs compared to standard mortgages due to the limited number of specialist lenders in this niche market. This reduced competition often results in less favourable terms.

You should anticipate several fees throughout the process, including:

• Property valuation charges
• Lender arrangement fees (whether staying with your current provider or switching)
• Administrative costs
• Solicitor’s fees
• Stamp duty charges (applicable when purchasing additional shares exceeding 80%)

Whilst remaining with your existing lender often presents the most cost-effective route for a shared ownership remortgage, it’s crucial to conduct thorough market research before making your final decision.

Some mortgage providers may offer incentives, such as covering various fees associated with the remortgage process as part of their package.

Shared Ownership Remortgages Final Thoughts

The unique nature of shared ownership remortgages means they often require additional time for completion compared to standard remortgages.

To navigate this specialised market effectively, consulting a mortgage broker with expertise in shared ownership arrangements can prove invaluable. Their knowledge can help secure the most suitable deal whilst avoiding unnecessary expenses and complications.

Ring us today on 03330 90 60 30 or contact us. Our specialist advisors are ready to discuss your options in detail.

Related quick help remortgage guides: 

• Remortaging on maternity leave 
• How soon can I remortgage?
• Shared ownership remortgages
• How long does it take to remortgage?
• How to remortgage for an extension

Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Self-employed remortgaging may feel like a challenge, but it’s similar to any other remortgage.

The only difference is proving your income. While the employed only need payslips from the last three months as income proof, proving your income to the lender when self-employed requires more paperwork.

Adequate preparation and the right support or advice from mortgage brokers or advisors can help make the process smoother and more efficient.

Here’s everything you need to know about how to get a self-employed remortgage.

Can the Self-Employed Remortgage?

Yes. You can remortgage when self-employed and access the same rates and deals as everyone else, provided you have a solid self-employment track record and can prove your earnings.

To ensure you can afford repayments, most lenders will need you to show at least three years of accounts prepared by a qualified accountant for accuracy.

Other lenders can ask for two years, while some will accept one year of accounts if you’ve been self-employed for less than two years.

Your circumstances and need will determine whether it’s easy or difficult to get a new deal from a mainstream lender.

Thankfully, you can find lenders who specialise in helping self-employed remortgage borrowers and brokers or advisors who can help you find the best deals.

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How The Self-Employed Remortgage Process Works

The self-employed remortgage process is similar to the employed, apart from the extra paperwork. Here’s how you can remortgage:

• Start shopping around 3 to 6 months before your current mortgage deal ends. Timing your remortgage helps you avoid moving into the lender’s standard variable rate (SVR). The SVR is the lender’s default rate which you’ll get into when your current deal ends if you dint remortgage or switch to a new deal. It’s usually higher than the rates you find in a deal, and the repayments can go up and down each month.
• You can make a product transfer by making a new deal with your current lender or switching to a different one. Product transfers can mean less paperwork, but checking out other deals available can help you save a lot of money.
• Staying with your current lender through a product transfer ensures you dint jump through many hoops. Provided you’ve been making your repayments on time, you’ll not appear as risky, and they’ll already know everything they need to know about you.
• If you decide to switch lenders, they’ll need to carry out the same eligibility checks as when you first got a mortgage, including credit checks and income proof.

The whole process can take from four to eight weeks, and it can be less or more depending on your preparation and circumstances.

Always ensure you give yourself enough time for remortgaging before the current deal ends.

Who Do Lenders Consider Self-Employed?

You’ll be considered self-employed by the lender if you own over 20% of the company where you earn your main income.

You can be a contractor, sole trader, freelancer, director of a limited company or in a business partnership.

Lenders will require you to provide your SA302 tax calculations or tax tear overviews for the previous two years as proof of income if they consider you self-employed.

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Can I Remortgage If I’m Newly Self-Employed?

Whether or not you can remortgage with some lenders will depend on how newly self-employed you are.

If you became self-employed soon after getting your mortgage, have at least one year of accounts and a completed tax return, plus proof of getting more work like signed contracts, you can easily remortgage with some lenders.

However, remortgaging when you haven’t filed your tax return for the first year of trading can be tricky.

You’ll not have any definitive proof of your income from the lender’s point of view. The lender cannot judge your affordability without scrutinising tax returns from your first year.

All lenders, including mortgage lenders, are reluctant to take on risk and must ensure you can afford repayments.

Therefore, even if your new venture is successful in the first few months, the lender will need a bigger sample size before agreeing to lend you money.

However, you don’t have to lose hope in such a situation. Some specialist lenders can help, or you can remortgage with your existing lender if you’re already making repayments on time while self-employed.

Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

Tips for A Smooth Self-Employed Remortgage

Although it can be a challenge to get a self-employed remortgage, it’s not impossible. Here are a few tips to help make the process a little easier:

1. Prepare Your Paperwork

You may find yourself racing against time to get the tax returns and accounts you need to remortgage, depending on when you got into self-employment.

Start getting your paperwork in order early by registering with Her Majesty’s Revenue and Customs (HMRC) and keeping clear and up-to-date records.

2. Improve Your Credit Record

A good credit record goes a long way in showing you handle borrowing and repayments responsibly.

Demonstrating such responsibility and boosting your overall credit rating before you apply can help reduce obstacles to remortgaging when self-employed.

3. Reduce Your Loan to Value (LTV) ratio

The LTV ratio shows the size of your mortgage compared to the value of your property.

The lower your LTV, the less risky you’ll look to lenders, which translates to lower interest rates and more affordable monthly repayments.

4. Provide Proof of Future Work

Evidence of future income streams and contracts with ongoing and reliable clients can help show lenders you’re less of a risk, especially if you don’t have at least two years’ worth of accounts.

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5. Use A Mortgage Broker

A mortgage broker is your best bet if you’re self-employed and want to remortgage.

A broker will have access to the whole market and save you the headache of searching and picking the right deal.

They can access exclusive deals, show you lenders who can accept your application based on your circumstances and share their expertise in remortgage solutions for the self-employed.

Related quick help remortgage guides: 

• Remortaging on maternity leave 
• How soon can I remortgage?
• Shared ownership remortgages
• How long does it take to remortgage?
• How to remortgage for an extension

Self Employed Remortgage Final Thoughts

The only difference when remortgaging while working for yourself is providing proof of income.

A mortgage broker or advisor can hold your hand through the entire process, from initial searches to dealing with the legal stuff, to ensure the process is as smooth as possible.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Valuations for remortgage provide indications of a home’s current market value.

It’s part of the remortgage process where your current or new lender assesses your property to ensure it’s worth what you say before approving you for a new mortgage deal.

Here is everything you need to know about valuations for remortgage.

Why are valuations for remortgage important?

Valuations for remortgage help lenders ensure your property is enough as security.

To mitigate the risk of remortgaging, lenders want to know that if you default or fail to keep up with repayments, they can repossess your home and sell it to recover their money.

Remortgage valuation considers whether the property is suitable and shows the property’s current loan-to-value (LTV) ratio.

The LTV is the size of your mortgage compared to the value of your property expressed as a percentage.

For example, if your home is worth £100,000 and your outstanding mortgage is £75,000, your LTV ratio is 75%. Your LTV will impact the deal you get on your remortgage.

Lenders generally offer better deals to applicants with lower LTV because they offer more security, and you can get low-interest rates and more affordable monthly repayments.

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How are remortgage valuations carried out?

Lenders can use different methods to carry out property valuations. These include:

• Desktop valuation – True to its name, desktop valuation involves estimating the property’s value from a desk without physically visiting the property. Desktop valuations are computer-automated and involve qualified surveyors using recent comparable sales, property data, and listings of similar properties in your area to determine your property’s value.
• Drive-by valuation – Involves a quick, external valuation where the surveyor visually inspects the property’s condition from the outside. They look for major issues on the walls or roof that can affect the property’s value.

The lender chooses the types of valuation you get depending on how risky they think your property might be.

For example, if your property features non-standard or unusual material like a thatched roof, the lender will likely send a surveyor to do an in-person survey.

If there’s limited up-to-date information on your area online or the lender has never mortgaged in the area before, they can opt for a physical survey.

Desktop valuations are usually the fastest and cheapest for lenders. With most lenders offering free valuations as an incentive for new customers, you’ll likely not see a surveyor knocking at your door.

How much do valuations for remortgage cost?

A remortgage valuation can cost anywhere from £250 to £1,500, depending on the value and size of your property.

Some lenders may require you to pay for the valuation, but free valuations are now common among most lenders as part of the remortgage deal.

Related quick help remortgage guides: 

• Remortaging on maternity leave 
• How soon can I remortgage?
• Shared ownership remortgages
• How long does it take to remortgage?
• How to remortgage for an extension

Remortgage valuation vs. house survey

Mortgage or remortgage valuations are not the same as a house or home-buyer surveys. Valuations for remortgage are usually brief visits for the lender’s benefit and don’t include entering the property.

As a result, it doesn’t provide an accurate report of the house’s condition.

Remortgage valuations are often short reports, around two to three pages long, and don’t flag any maintenance or repairs you need to be aware of.

These reports go straight to the lender, and you may not even see a copy.

A home buyer’s report involves a full structural report and is usually more detailed and in-depth.

Surveyors look at every aspect of the house, assessing the property’s condition inside and outside and highlighting potential defects for the buyer’s benefit.

Although structural valuations don’t normally include mortgage valuations, some home buyer reports do, but you need to check what the lender prefers to avoid incurring double expenses.

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What happens after valuations for a remortgage?

The surveyor will contact the lender directly to give them their opinion after the valuation.

Regardless of the valuation the lender gets, they’ll base their decision on the surveyor’s expert opinion.

If the surveyor agrees with the property value in your remortgage application, the lender will likely process the new mortgage.

However, if the surveyor disagrees with your property value assessment and finds that it’s worth less than what you think it is, you’ll likely get a down valuation.

It involves the lender giving you a revised mortgage offer, and it can put your plans on hold if you’re remortgaging to access money tied up in your property for renovations or home improvements.

Down valuations have recently become more common, with 1 in 30 homes in the UK getting down-valued post-pandemic as lenders cut their offers by an average of £30,000.

Can you challenge the lender’s remortgage valuation?

Challenging the lender’s mortgage valuation can be tricky because it’s up to them to decide whether or not they’ll accept an appeal.

Down valuations usually happen when house prices are out of sync with the current market trend.

For example, house prices in a particular area may fall faster than in other areas, causing a gap between what agents believe a property is worth rather than a surveyor’s expert opinion.

You’ll need robust evidence backing your initial valuation to challenge the lender’s valuation.

It can include at least three examples of nearby, similar properties that recently sold for a price close to the property value on your remortgage application. You can only use properties that have already been sold and are not currently on the market.

Without enough evidence, you can accept the new offer and make up for the shortfall through other means.

You can also try other lenders who use different surveyors, and they could give a valuation that’s closer to your expected property value.

Mortgage brokers can come in handy in such situations by helping your find alternative lenders with better deals.

Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

Check Today's Best Rates >

Tips for remortgage valuations

Here are a few things you can do when applying for a remortgage to help you avoid a down valuation:

• Research the property’s value thoroughly by checking the average sales price of properties in your area on sites like Zoopla. Base the valuation on sales within the last 3 to 6 months for a close reflection of the market value.
• Get an expert opinion from local agents and use an average of the different valuations as a good price.
• If you’re remortgaging with the same lender, check with them, as they likely have the property value on file.

Valuations for Remortgages Final thoughts

Getting an accurate remortgage valuation for your application can help you avoid surprises like down valuations.

Talk to a suitable mortgage broker who can help you find the best deal thanks to their expertise and whole-of-market access.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Do you want to remortgage with the same lender? In this guide, we explain the pros, cons and potential limitations.

Remortgaging ensures you always have the best product available for your current circumstances.

If your mortgage deal is nearing its end, you should think about switching to a new and better deal.

Remortgaging involves changing the mortgage you currently have on your property, and it’s a significant financial decision that can save you thousands and even help you borrow more.

You can remortgage by moving to a new lender or entering a different deal with your existing lender.

It’s always a good idea to see if you can get a better elsewhere, but remortgaging with the same lender also has benefits.

This guide explores how to remortgage with the same lender, the benefits, and factors to consider when deciding.

Remortgaging With The Same Lender

Remortgaging with the same lender is super easy, and it’s usually referred to as product transfer.

It involves switching to a new mortgage deal with better interest rates where possible and a revised term if possible.

If the amount borrowed remains unchanged, product transfers don’t involve a total property valuation, dealing with solicitors, or eligibility assessments, making them very quick to complete.

Here’s how to remortgage with the same lender:

• When your deal gets close to ending, your lender will usually get in touch with you with various offers and rates for you to choose from, enticing you to stay with them.
• The next step is to choose the deal you want from the offers in front of you and transfer. It usually involves a few clicks online in most cases.
• The final step is to agree to the new terms, and voila, you’ve remortgaged. No fees or extra charges.

A mortgage broker or advisor can also help you remortgage with the same lender.

They’ll usually compare your lender’s offer with the whole market, so you can be sure you’re getting the best deal available.

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Benefits of Remortgaging with the Same Lender

It Saves You Money In the Short-term

Remortgaging with the same lender saves you money upfront by helping you avoid valuation fees and legal costs.

However, this is only a short-term saving, and you should weigh it against remortgaging with a new lender whose willing to pick up the tab on such fees, and many do.

Such a route can save you money in the long run if you get a better rate with lower monthly repayments.

It’s Time Saving

Since you’re not purchasing a new property, your current lender already has your details from your original mortgage application.

It only involves a simple swap of mortgage products and can be processed in 30 minutes.

Switching to a new lender requires more preparation and time. It can take weeks, and you need to start planning four to six months before your current deal expires.

It Can Work In Your Favour

If there have been considerable changes in your life or situation since your last mortgage application, an existing relationship with the current lender will work in your favour.

A new and complete mortgage application can be stressful if your financial situation has changed. For example, you may have changed jobs and are earning less money.

If you stick with your current lender, such changes won’t matter, provided you make repayments on time. The process is more straightforward because they won’t ask for income proof or wage slips.

Factors To Consider When Deciding

Remortgaging with the same lender without checking what other remortgage deals are out there is not recommended. Here’s why:

It might not be the best deal

The lack of choice is the main drawback of remortgaging with the same lender.

There’s no guarantee the remortgage deal your current lender is offering is the best one on the market, and since you’re an existing customer, you’ll not access their new customer deals.

They’ll likely share the deal compared to their standard variable rate (SVR) to make it enticing, but a new lender can probably beat the rates.

It’s wise to shop around before agreeing to a product transfer and see how much you can save.

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You can miss out on a better loan-to-value (LTV)

When you remortgage with a new lender, they’ll conduct a total property valuation of your home, which is rarely done in a product transfer.

Finding a new lender is the way to go if your property has increased in value since you first took up your mortgage.

The LTV is the size of your mortgage expressed as a percentage of your property’s value.

Lenders consider LTV bands when making their decision, and it will impact the deal you get. Lenders generally offer better rates to people with lower LTV.

If a new valuation shows your property’s value has increased, you’ll have access to a broader choice of deals and better rates.

Remortgaging with the same lender may not be as flexible

When you first entered your first mortgage deal, you were probably more focused on getting onto the property ladder.

After making repayments for a couple of years, you’re likely more focused on paying off the debt with more flexibility and remortgaging with a new lender can help you achieve this.

Whether you want a deal with lower monthly repayments or one that lets you make overpayments without being penalised, you’ll likely need to cast your net a little wider than what your current lender has to offer.

Shopping around for a new lender with such factors in mind can help you find the best deal for your current situation.

Does Remortgaging With The Same Lender Involve Credit Checks?

You generally don’t need a credit check to remortgage with the same lender.

If you’ve been making repayments on time, they know they can trust you and don’t have to dig into your creditworthiness.

The lack of a credit check can make sticking with your current mortgage lender more appealing if your credit score has recently taken a hit.

How To Remortgage With The Same Lender Final Thoughts

Remortgaging with the same lender can save you time and fees and work in your favour if circumstances have changed since taking out your mortgage.

However, it’s not recommended to remortgage with the same lender before shopping around and checking what other deals are available.

Consider using a mortgage broker with complete market access to ensure you get the best deal.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Although it doesn’t take that long to find and apply for a new mortgage deal, there’s a lot of paperwork and processes that follow.

Besides, if you’re switching lenders, you might also need to have your property revalued.

Since the current demand is high, remortgaging is a longer process than in previous years.

In 2022, you can expect remortgaging to take around two months and allow yourself longer than that if you can.

Working with a mortgage broker will take the hassle out of the hunt for you.

With access to thousands of deals from the best lenders across the country, a broker can speed up the process and help land you on the right deal.

Here’s a complete breakdown of the remortgaging process.

Steps To Remortgaging

Step 1: Shop For A Mortgage Deal (1 day)

The first step to remortgaging is to find a new mortgage deal.

You don’t always have to move to a new lender to remortgage. Instead, you can stick to your current provider and move to a lower rate.

However, it’s always smart to compare other products in the market to ensure you are getting the best deal.

If you choose to work with a mortgage broker, you’ll need to provide:

• Your personal information.
• Your credit report.
• Details about your current mortgage.
• Details about your income and expenses.
• Details about your current situation and what you want to achieve with your remortgage.

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Step 2: Get A Mortgage Agreement In Principle (1 day)

Now that you have found the right remortgage deal, you need to apply for a Decision in Principle or a Mortgage in Principle.

This will show you how much the lender is ready to lend you based on the information you give them.

You can confidently move on to the next step if your DIP is approved.

If your DIP is rejected, it might be that you need to supply additional information.

A broker will know the right thing to do, which might mean fixing some things in your credit report and trying again.

Step 3: Gather Your Documents (1-3 days)

Now that your DIP is secured, it’s a good idea to start prepping your documents, such as:

• Photo ID: You will want a valid UK passport or driving license, although some lenders might also accept other forms of ID.
• Proof of address: This can be a utility bill or bank statement dated within the last three months.
• Proof of expenses: Bank statements within the last three months
• Proof of earnings: This will depend on your situation:
  • If employed, you will need to provide payslips from the last three months. Some lenders may also require your P60 to prove any additional income.
  • If you’re self-employed, you must provide your SA302s and tax year overviews from the previous two years. You may also need to offer trading accounts or a reference from your accountant.

Step 4: Submit Your Remortgage Application (1 or more days)

After gathering all your necessary documents, the next step is applying for your remortgage.

If you are using a broker, they can do this for you.

You will be notified if you need to provide additional information at this point. If not, you can sit back and wait!

Step 5: Remortgage Valuation (1 week)

Before approving your new mortgage deal, your lender may want to confirm that your property is worth what you say it is.

Sometimes this will be completed by visiting your property.

In other cases, it will be done electronically by using online data for properties in your area to estimate the value of your property.

While valuations can cost £250 to £1,500, many lenders do it for free as part of the remortgage deal.

Step 6: Get Your Remortgage Offer (1-7 days)

Once the valuation is over and your lender has viewed your application, supporting documents, and credit score, your lender will give you a decision.

Depending on your situation, you can get one of the following results:

1. Your application is approved. This means you have fulfilled the lender’s affordability criteria and can move forward confidently, knowing they will lend you the money.
2. Your application has been referred. At this point, you may be asked for extra supporting details. If you are using a mortgage advisor, they will help you deal with this.
3. Your application is rejected. In this case, your broker can help you understand the reason for rejection and determine the best course of action.

Has your application been accepted? Good for you!

Now you get seven days to reflect and decide if you are sure you want to go ahead with the remortgage deal.

If you change your mind, you can cancel your contract within these seven days.

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Step 7: Complete the Legal Work (2 or more weeks)

Now that you have received your new mortgage offer and are sure you want to go ahead, you will need to hire a licensed conveyancer or solicitor to manage the legal work and finalise your remortgage on your behalf.

While some lenders will appoint a solicitor or conveyancer for you, acquiring your own might also be necessary.

If you are changing lenders, your conveyancer or solicitor will perform several checks to ensure that your new mortgage is enough to pay off your current lender.

They will contact your existing lender and request a redemption statement if everything looks fine.

This statement will inform your new lender about the amount they need to pay to settle your previous mortgage.

Once your remortgage has been completed, your new lender will contact you to inform you about your monthly repayments.

Congratulations! The land registry will finally be updated to show your new mortgage deal.

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Do You Need Help With Your Remortgage?

Are you wondering how to go about switching to a better deal and remortgaging?

Here at Mortgageable, we help you find the best deal for your situation and take care of the entire application process from start to finish to ensure you get your new mortgage without any hassle.

We’re ready to get you in touch with the UK’s mortgage professionals.

Hop on board and answer a few quick questions to get started.

Extending your home can add value to your house and provide you with that extra living space you need without having to move.

It’s possible to remortgage your house for home extensions and improvements provided you can afford repayments and have equity in your home.

Here’s are a few things to consider when remortgaging for an extension in the UK.

How Much Equity Do You Have?

When you want to remortgage to fund building works like a home extension, the first thing to consider is how much equity you have in your home.

It’s usually unwise to release too much equity from your property because there’s always the possibility of a value decrease.

If you take out too much equity, you can risk getting into negative equity. It involves the outstanding loan balance being higher than the amount of equity you own, making it difficult to remortgage or sell your home in the future.

You can easily calculate your equity by subtracting the mortgage value balance from the property value.

For example, if your property is worth £250,000 and the mortgage balance is £100,000, you have £150,000 equity in your home. It translates to a loan to value ratio of 100k/250k = 40%.

Generally, a low LTV is good, while a high LTV is less desirable because it means you have less equity in the home. It can affect the amount you can borrow and the interest rate you get from lenders.

If remortgaging drastically reduces the amount of equity you have in the property, you may end up with a worse LTV ratio than you currently have.

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Related guides: 

• Mortgage 5 times salary.
• Can you get a mortgage on land? 
• Refurbishment mortgages.
• Part and part mortgages.
• HMO mortgages.

Is The Extension Worth It?

You want to be sure the extension will break even in the long run before remortgaging. You’ll increase the size of your loan when you remortgage, which will translate to higher monthly repayments or a longer term that increases the amount of interest you pay in total.

To know whether you’re making an excellent financial move, determine how much the extension will increase the value of your property relative to how much it will cost.

If remortgaging to build the extension may lose you money in the long run, it may not be worth it. However, if you don’t plan on selling and need the extra space, you can go ahead anyway.

Can You Afford It?

Before you remortgage for an extension, you need to determine whether you can afford the loan repayments. Lenders will also look at your affordability, and they have different ways of working this out. The most common one involves looking at your income and monthly expenditures.

Remortgaging involves increasing your loan amount, and it’s crucial to ensure you can afford the higher monthly repayments for a longer mortgage term.

You’ll pay more interest overall, and you have to think ahead and determine whether you can afford the remortgage if your circumstances change in the future.

Lenders can reject your remortgage request if they think you’ll struggle to repay. Even if you have additional sources of income, some lenders may include them in their affordability assessment while others may not.

Remortgaging Before Or After An Extension

While remortgaging for improvements like extensions is something most people do in advance of the work, you can also choose to remortgage after doing the extension work if you can pay for the work upfront in the short term.

Your property’s value can increase depending on your changes, translating to more equity for a remortgage. You’ll have access to cheaper rates and a better, more comprehensive range of products.

However, you also need to consider the risk of remortgaging after an extension. Your house may not increase in value, or lenders may reject your remortgage application.

Consulting experts or brokers in home improvement remortgage can help you make an informed decision and give you an idea of whether your application is likely to be approved or not.

Are You Self-Employed?

Previously, self-employed borrowers would have found it challenging to get a mortgage or remortgage, but this is no longer the case.

You can now find plenty of options for borrowers who work for themselves, and there are specialist lenders who can approve your application with only one years’ account.

Some are more understanding if you’re on the same line of work you did as an employee before becoming self-employed. If you’re close to your year-end, they can even consider and accept less trading history.

How you get income from your business can influence the best lender suited to your situation. Some may determine how much you can afford to borrow based on your salary and dividends, while others consider additional factors like insurance, allowances, and working from home or an office.

Some lenders focus on the net profit of your business when determining affordability, which can make a big difference in how much money you can access in a remortgage for house extensions.

Do You Have Bad Credit?

Having bad credit is no longer a death sentence when you need financing. You can find many remortgage options for those who wish to unlock their home equity for home improvements like extensions but have faced credit issues in the past.

Mortgage lenders who specialise in helping bad credit borrowers allow you to borrow up to 90% loan to value or higher!

The type of mortgage suitable for you will depend on the recency and severity of your credit issues. Borrowers with older credit issues are more favourable than those with recent misdemeanours.

Such lenders who specialise in providing mortgages to borrowers with bad credit mostly only work with mortgage advisors and brokers, which can be the only way to access them.

Therefore, it’s wise to consult a mortgage advisor or broker instead of looking for lenders directly.

Mortgage brokers and advisors have access to the entire market and can help you get the best rates and deals based on your situation.

Alternatives To Remortgaging For An Extension

There’s more than one way to fund your extension plan. Some alternatives to consider include:

• Using Your Savings – If you have some money saved up, this is the cheapest and best option for your plans. You won’t have to repay any loan or pay interest on anything, and once the value of your house increases, you can make huge returns.
• A Second Mortgage – A second mortgage, sometimes referred to as a further advance or second charge loan, involves keeping your current mortgage as it is and taking out a separate mortgage with a different provider. The interest rates may be higher than the existing mortgage, but they’ll still be lower than a credit card or personal loan.
• An Unsecured Loan – Unsecured loans like home improvement loans can come in handy if you don’t want to use your property as collateral or security. Such loans are usually based on other factors apart from the equity you have in your home, such as your credit score. However, they can feature higher interest rates compared to mortgages or remortgages.

Will You Need Planning Permission?

Making extensions or additions to your house is generally considered permitted development, so you’ll probably not need to get planning permission.

The general rule of thumb is that more extensive and significant improvements will need planning permission from the local government while smaller, less obstructive ones will not.

The extension shouldn’t be higher than the roof of the house, and it shouldn’t exceed over three meters from the house wall, and the materials used should be similar to those used in the house.

Remortgaging For An Extension Final Thoughts

Remortgaging is a great way to fund extensions to your home and increase the value and comfort of your house.

They feature low rates and are suitable for those with a bad credit score or self-employed.

Consulting a mortgage adviser can help you get the best deals available and ensure you make an informed decision.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Further reading: 

• How much does the average mortgage cost?
• Modern method of auction 
• What mortgage can I get for £500? 
• Mortgages for discharged bankrupts