Can I remortgage my home?

Most people can remortgage their home when they want a new remortgage deal. You may think your circumstances are unusual but, whatever your situation, lenders will usually consider an application.

Here's what you need to know about remortgaging in unusual situations:

Can I remortgage if I own my house outright?

People who have no mortgage on their home, (known as an unencumbered property) are in a strong position to remortgage. With no outstanding mortgage, you own 100% of the equity in your house. The mortgage deals available to you will depend on how much you want to borrow as a percentage of the current value of your property, which is known as the loan to value ratio (LTV). You will need to meet the criteria for the new mortgage. Lenders have slightly different rules for people who want to remortgage their unencumbered property. For example some lenders will offer you their purchase rates instead of their remortgage range – which may result in a better rate for you. Our mortgage advisers can tell you about this and help you find the most suitable lender for your situation.

Can I remortgage when I'm over 60 or retired?

When you turn 60, you might find it difficult to get a mortgage. Some lenders are happy to give mortgages that borrowers will still be repaying after they have retired. But others will not.
It will get even more difficult if you want to remortgage at 65, 70 or older. If you've retired and no longer have an earned income, then you might not be able to remortgage at all.
Speak to one of our mortgage advisers because they know which lenders are most likely to consider applications from older people.

Can I remortgage if I'm self-employed or freelance?

Yes, you can remortgage but you might have difficulty finding a lender. Your problem will be proving that you have enough earnings to afford the repayments. This is less of a problem if you've been self-employed for a few years and have regular audited accounts showing that you have a steady income. Newly self-employed people need to convince lenders that they'll be earning enough to afford the remortgage. Your tax returns can help here. Our advisers can tell you how to go about making an application.

Can I remortgage my shared ownership home?

The answer is – probably. This is a specialist form of lending and you need a lender that offers shared ownership mortgages. Some lenders will offer their full range, whilst others will have specific shared ownership rates. Our mortgage advisers know where to look. If you wish to capital raise, to purchase an additional share of your shared ownership property – known as ‘stair casing’, our mortgage advisers can help with this too

Can I remortgage if I have negative equity?

Negative equity means that your home is worth less than the size of your mortgage because house prices have come down since you took out the original loan. Speak to us to see if your lender will offer you a retention product that will save you money. We can also advise you on the possibility of making overpayments calculator to help reduce the negative equity. You pay nothing for our service. It is fee free..

Can I remortgage with the same lender?

Yes, you can. Your existing lender will usually offer you a selection of retention schemes. We can compare these, and their set up fees (where applicable) to the whole of the market to calculate the best solution for your remortgage.

Can I remortgage during a fixed term?

The answer is yes, but doing so might not be your best option. If your existing product has early repayment charges, we will work out if we can save this penalty if you move your mortgage before it expires. We can advise you of your different options and talk through your requirements to determine your best solution. If you need to remortgage to release equity, instead of incurring an early repayment charge you may be better taking a further advance for a short while – we can calculate your options and talk through the figures to understand the best solution. All this advice is free.

Can I remortgage before my deal ends?

Like the answer above, yes you can but remember to factor in any early repayment charges, if applicable. If you believe interest rates might increase you may wish to secure a new fixed rate sooner rather than later. Mortgage offers are valid for around 3 to 6 months, depending on the lender. So it can be worth reviewing up to 9 months before your current deal expires. Also you may be better off with a product that runs for a set number of years, i.e. 2 years, rather than until a fixed end date i.e. 30.06.19. This way you will still benefit from the full 2 years on the product.

Can I remortgage if I am on maternity leave?

Yes you can, but lenders policy on this varies greatly. For example; some will write to your employer to confirm your return to work date and your returning salary. A few will need your return to work date to be within 2/3 months of the start date of your new mortgage. Some will require proof of savings to cover the maternity period. Others may ask for future childcare costs. This may make the thought of remortgaging sound complicated and time consuming, it’s not. Our specialist mortgage advisers know who does what and will be able to advise you accordingly.

Can I remortgage if I am about to change job?

Yes you can, but you will not have the pick of the whole market. If you are about to change jobs a handful of lenders will let you remortgage, assuming you meet all other criteria. Some may ask you to meet additional specific criteria, for example some will need your new job to start within a few months of your new mortgage, and others may not set any conditions at all. Whether you are better off waiting to remortgage until you have changed your job or go ahead now can be discussed with our mortgage advisers.

Can I remortgage if I am on probation period?

Yes, subject to conditions. A handful of lenders don’t like probation periods, but others will happily consider on a case by case basis. Stipulations can vary from being a professional, having continuous employment history, to time served on probation period. Don’t just assume you need to wait until your job is made permanent, talk to us today to see if you can get the ball rolling.

Can I remortgage using my Child Tax Credit & Working Families Tax Credit?

The short answer is almost certainly yes, some lenders will take 100% of both, if they are not due to end shortly/if your children are under 14 years old. Others will only take 50% and some will not accept at all. These differing policies can vary the amount you can borrow greatly.

Can I remortgage using my maintenance payments?

Most lenders will take a percentage of your maintenance payments, (from 50% to 100%), if you meet certain criteria – i.e. if they are via court order or have an established track record and/or have 3 months bank statements to prove them. Before we make a recommendation we can talk cases through with underwriters to ensure it all fits in principle.

Can I remortgage using mine or my dependents disability living allowance?

Depends on the lender; some are happy to use all your disability living allowance, others are not. Some will only use a percentage of it and/or have varying stipulations such as – it must be guaranteed for the term of the mortgage, or only if it is not your only source of income. Not only do our advisers know who will do what, they are able to talk directly to underwriters to discuss cases on an individual basis. This means we can get cases provisionally agreed before credit scores are completed.

Can I remortgage with a bad credit history?

It depends. We would ask you to send us a copy of your credit file. We can advise which company is best for this as different lenders use different providers. Once we have this, we can see what the underwriter will be looking for and can advise accordingly. It is certainly worth talking to us for free advice before you commit to a new deal.

Can I remortgage if I have a Buy to Let mortgage in the background that is not self-financing?

Yes, probably but lenders policies on this varies greatly. Some will just need you to cover the shortfall with your income, taking it as a financial commitment, others will require your income to cover both mortgages in full. Lenders rental calculations vary from 100% to 150% of pay rate/lenders SVR. The potential savings you could achieve with remortgaging your Buy to Let are worth investigating.

Can I remortgage to consolidate or pay off debt?

Yes, possibly. However, if you are consolidating debt, a lot of lenders restrict the amount you can borrow based on your property value. Policies also vary depending on the type of debt you are consolidating. But remember that by consolidating you would make an unsecured debt* secure. Also, if you are spreading the cost over a longer period, even on a lower rate, it may ultimately cost you more in interest, unless you overpay. All this must be considered, as this may not be the best course of action. Our mortgage advisers can talk you through your options.

*With unsecured debts lenders don’t have the rights to any collateral for the debt. If you add the unsecure debt to your mortgage you would make it secured, which means the lender has the right to take the asset (your house) if you fall behind on your payments.

Can I remortgage to capital raise for home improvements or personal use, i.e. to buy another property?

Whether you are looking to remortgage for home improvements or for personal use, i.e. to purchase another property, many lenders will consider lending up to 90% loan to value (LTV). Others will restrict the loan to value. We can help calculate your LTV and search the market for the best solution.

Can I remortgage to raise capital to buy someone else out of the property?

In this scenario many lenders will consider lending up to 90% loan to value, although many will limit you to 80% or 85% LTV. Your income will need to be sufficient to cover the mortgage in full. Some lenders ‘in house solicitors’ will be able to complete the additional legal work you will require, which is known as ‘transfer of equity’, for an additional charge. Others will expect you to use your own solicitor to complete the legal process needed to remortgage.

Can I remortgage to capital raise for business use?

It is possible, subject to criteria, but only a limited of mortgage lenders will consider this and the ones that do mainly restrict the loan to value to 70%. A select few may consider up to 85%. The answer can also depend on how established your business is.

Can I remortgage if I put solar panels on my house?

Most lenders are happy to consider properties that have solar panels, but will need you to meet certain criteria. For example, the lease needs to have a termination clause and/or will need the solicitor to confirm it meets CML/BSA criteria guidelines. Some lenders will charge an additional legal fee for this – others will not.

Can I remortgage a property I have recently purchased?

Some lenders will not offer you a remortgage until you have owned a property for at least 6 months. The good news is that others will let you remortgage from day one.

Can I remortgage my Help to Buy mortgage?

Not all lenders will remortgage Help to Huy, but a handful will. Out of these a few will restrict the loan to value. Our advisers can find your best option out of the lenders who will accept you, before your remortgage application is submitted.

Can I borrow 95% of the value of my new build house/flat?

Many lenders restrict the loan to value on new build houses and flats to 80%. A few lenders will consider up to 95%. Talk to our advisers to find out the maximum you can borrow.

How many years do I need on my lease to remortgage my leasehold flat?

On average lenders require around 70 years left on your lease at time of mortgage application. Although a few lenders will consider less, or will work from the years required at the end of your mortgage term. If your lease is short, it may be worth finding out how much it would cost to extend it, if possible, before you remortgage. As a longer lease may give you access to a better mortgage rate. Speak to us to review your options.

Can I remortgage if I have a second charge on the property with another lender?

About 50% of mortgage lenders will consider this, subject to affordability and will require a deed of postponement/ first charge. Don’t just assume your only option is with your existing lender, we could find you a better rate.

Can I remortgage using my bonus payments?

Most lenders will use this if it is guaranteed. If it is not guaranteed, a lot of lenders will consider using c50%. Tell us all the details you can about your bonus, (i.e. track record) and we will work out your options.

Can I remortgage using my overtime or commission?

Typically lenders will take 50% - of your average over the last 3 months. A few lenders will consider using 100%.

Can I remortgage using my limited companies retained profit?

A lot of lenders will not consider retained profit. However a good handful will consider if you are the 100% shareholder. As we have direct access to underwriters, tell us your scenario and we can investigate your options.

Can I remortgage if I am an IT contractor?

The good news is yes you can subject to underwriting. Generally if you are not PAYE, lenders will treat you as self-employed.

Can I remortgage if I am on a fixed term contract?

The simple answer is most lenders will consider on a case by case basis. Most will require a track record in the same line of work. Some will need the contract to have been renewed at least once.

Can I remortgage if I am a day/weekly rate, or zero hours’ contractor?

A lot of lenders will consider lending if you have a good track record with the same employer. It will depend on your individual circumstances, so visit our contractor mortgage page or call us with as much information as possible and we will work out your options.

Can I remortgage if I work for an Umbrella Company?

About 50% of mortgage lenders will consider your application, subject to credit score. A lot of these will treat you as self employed, but a few will not. Our direct access to lenders underwriters gives us instant decisions in these situations.

Can I remortgage if I am a temporary worker or agency worker?

Your options will be limited but a handful of lenders may consider if you have at least 12 months continuous track record.

Can I remortgage on interest only?

Good question. The answer to this question is a minefield - it depends on your loan to value, the equity you have in your property and what method you have (if any) to repay the interest. You may well have more options than you think, call us to find out.

When I remortgage will all lenders use my credit score?

Surprisingly lenders don’t follow one rule, some just use your credit score, some just your credit check, and others use both. They are equally divided between Experian, Equifax and Callcredit.

Can I remortgage if I missed payments?

If you missed a payment on an unsecured agreement it would be well worth calling us as many mainstream lenders will consider your case. You may have more options than you think.

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Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

We're here to offer our customers excellent fee free mortgage advice. Our expert advisers will help you secure the best mortgage deal whether you're a first time buyer, remortgaging your home, buying to let or moving up the property ladder. We'll help you throughout the mortgage process – no hidden costs or surprises, just straightforward, honest, mortgage advice.

Representative example A mortgage of £218,181 payable over 24 years, initially on a fixed rate until 31/07/26 at 4.71% and then on a variable rate of 6.99% for the remaining 22 years would require 27 payments of £1,266.09 followed by 261 payments of £1,541.62. The total amount payable would be £437,546 made up of the loan amount plus interest (£218,366) and fees (£999). The overall cost for comparison is 6.7% APRC representative.

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