Unsure how much a lender will be willing to offer you when you’re ready to remortgage?
Regardless of whether you’re a year away from remortgaging or just a couple of months, we can help by identifying which factors can affect how much you can borrow.
How much can you borrow when you remortgage?
When remortgaging, the amount you can borrow from a lender will be determined by the same criteria as when you obtained your initial mortgage.
As long as your financial circumstances and your property’s value have remained roughly the same, then you should be able to borrow a similar amount (4.5 times your annual income minus outgoings) when you remortgage.
Here’s a reminder of what matters:
Have your financial circumstances changed?
Given lenders use your income and affordability to determine how much you can borrow, any changes to your credit score, existing debt, and expenses could affect how much they’re willing to offer you when remortgaging.
Higher credit scores, decreased debt, and fewer expenses can all contribute to your remortgage application being viewed as lower-risk, meaning lenders should be willing to offer your desired loan amount.
Has your home’s value changed?
If the value of your home has increased since your first mortgage arrangement, your loan-to-value (LTV) ratio will drop, helping you to obtain more favourable remortgage deal terms.
Alternatively, if the value of your property has decreased over time, then you’ll have a higher LTV.
How much equity do you have?
Linked to the above, if your home’s value has increased then you’ll have greater equity.
When remortgaging, you’ll have typically built up a certain amount of equity in your property (that is, the amount you’ve paid off your property, not including interest) unless you’ve opted for an interest-only mortgage arrangement.
The more equity you have in the property, the lower loan amount you’ll require, which should make it easier to obtain.
This also means you’re more likely to be offered better terms and interest rates as you’ll be seen as lower-risk in a lender’s eyes.
If you’ve had a significant change in your financial or personal circumstances, and are concerned about how much you’ll be able to borrow when you remortgage, it’s crucial that you contact one of our expert mortgage advisors.
Can I borrow more when I remortgage?
Searching for a clear answer to the question; ‘when I remortgage, can I borrow more’? Put simply, yes, it’s possible to borrow more money when you remortgage.
If you pass the lender’s affordability checks, you should be able to increase your loan size by securing it against the equity in your home.
This is process is called remortgaging to release equity.
No matter whether you have home renovation plans or are keen to pay off debt, there are many reasons as to why homeowners choose to remortgage to release equity.
Remortgage with expert support from UKMC
At UKMC, we’ve assembled a knowledgeable team of expert remortgage advisors to help guide you through this process with ease.
With access to thousands of mortgage deals, lenders, and products, we’ll hand-pick some of the most suitable options for your specific circumstances.
For clear and jargon-free answers to more questions like ‘can I borrow more money when I remortgage’, don’t hesitate to contact our helpful and down-to-earth team today!
You can book your appointment with our expert team of mortgage advisors by either giving us a call on 01925 573328, emailing us at hello@ukmc.co.uk, or heading online to schedule an appointment.
Our family-run business is based in Warrington, so if you live in Cheshire or the surrounding area, why not pay us a visit to discuss your remortgage requirements in-person?
Disclaimer
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
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.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
Registered company number: 15825320
