If rising interest rates are making you worry about what’s going to happen when it’s time to remortgage – you’re not alone.
According to the Bank of England’s July 2026 Financial Stability Report, more than five million households will see their mortgage repayments increase by the end of 2028.
The report also found that nearly 750,000 households paying interest rates below 3% will come off their fixed-rate deals during 2026 and are projected to see their monthly mortgage repayments increase by an average of £170.
That’s a huge jump!
With millions of people facing higher repayments when their current fixed-rate deal comes to an end, you may be wondering: ‘What if I can’t afford to remortgage?’
What happens if you can’t afford to remortgage?
If a lender spots too many red flags and believes your remortgage to be high risk, they may turn down your application.
If this happens, the most important thing you can do is stay calm and not panic!
Next, if you can’t remortgage due to affordability, contact us.
Our team of trained remortgage advisors will ask questions about your current position and recommend the most suitable options for you.
Depending on your circumstances, some of the options we may explore with you include:
- Extending your mortgage term
- Staying with your existing lender
- Switching to an interest-only mortgage
- Adding a guarantor to your mortgage
- Improving your credit score
How do you know if you can’t afford to remortgage?
If you apply to remortgage with a new lender, they’ll usually ask you to complete an affordability assessment.
The lender will consider factors like your current income, employment status, regular outgoings, and existing debts.
If you don’t pass the affordability check, your remortgage application could be declined.
There are many reasons why you may find it more difficult to be accepted for a remortgage, including:
- Interest rates have risen
- Your debts have increased
- Your employment status or income has changed
- The value of your home has decreased
- You’ve missed mortgage payments or are in arrears
- You have a bad credit rating
If you’re worried about remortgage affordability, contact our friendly remortgage advisors at UKMC to discuss your options.
Can you be turned down for a remortgage?
The simple answer is: Yes.
Every lender has its own criteria for approving a mortgage, and if you can’t meet them, your mortgage application may be turned down.
What happens if I don’t take any steps to remortgage?
If you’re worried about your remortgage affordability, it may be tempting to simply stay put and try to avoid attracting any attention.
However, if you don’t arrange a new deal before your current fixed-rate deal ends, your lender will automatically move you onto their Standard Variable Rate (SVR).
SVRs are unpredictable and can change at any time; they’re also usually much more expensive than fixed-rate deals.
Rather than sitting back and letting your deal expire, it’s worth speaking to one of our experienced mortgage advisers.
They’ll ask the right questions about your circumstances and explain what options are available to you.
How to improve your chances of passing an affordability check
If your existing mortgage deal is coming to an end soon, it’s time to start planning.
There are several things you can do to prepare for a remortgage and improve your chances of passing an affordability check.
You need to give lenders confidence that you can comfortably afford the repayments.
To improve your affordability, you should:
- Look for ways to increase your income
- Cut back on non-essential spending
- Reduce your debts
- Improve your credit score
- Avoid taking out unnecessary new credit before applying
- Check your credit report for errors
You may also benefit from increasing your equity by paying off more of your existing mortgage or saving for a larger deposit.
This will help to improve your loan-to-value (LTV) ratio. A lower LTV ratio indicates a lower risk to lenders.
Need advice on remortgage affordability?
Need advice on how a remortgage works or help assessing whether you can afford to remortgage?
At UKMC, we provide personalised, stress-free mortgage advice.
Our team can offer straightforward advice on what options are available to you, providing a transparent, tailored, and down-to-earth service.
DISCLAIMER
UK Mortgage Centre is a trading style of Refresh Mortgage Network Limited.
Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. FRN – 826982. Registered in England & Wales: 11614569.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
