Can I remortgage my home?
Most people, but not everyone, can remortgage their home when they want a new mortgage 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:
- your own your house outright
- you're over 60
- you're self-employed
- you're on a shared ownership scheme
- you have negative equity
I own my house outright, can I remortgage?
People who have no mortgage on their home are in a strong position to remortgage. With no outstanding mortgage, you own 100% of the equity in your house and lenders regard you as the lowest risk. This means they'll give you the widest choice of mortgage deals at the cheapest interest rates.
It'll also 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're less likely to get a loan if you want to borrow against almost all the equity in your home, such as 90%. You're unlikely to be allowed this much.
Even though you're a good risk, you must still meet the criteria for a new mortgage - you must be able to show the lender that you can afford the repayments, even if you're borrowing only a tiny percentage of the value of your house.
Some lenders have slightly different rules for people who want to remortgage when they have no mortgage at the moment. Our 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 when 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 - possibly. This is a specialist form of lending and you need a lender that offers shared ownership mortgages. There are not many of them though our specialist mortgage advisers know where to look.
Can I remortgage if I have negative equity?
Unfortunately remortgaging with negative equity is just not possible. 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.
Your best course of action is to ask your current lender if they can put you on to a mortgage with a lower interest rate.
However tight your finances are, do keep up your mortgage repayments and, if possible, try to pay off more when you can as this'll help reduce the negative equity. Check our effect of overpayments calculator.
If you're having difficulty remortgaging, talk it over with one of our advisers. They are knowledgeable about all unusual situations. You pay nothing for our service. It is fee free.