Can i remortgage my house

However, think carefully before you do this. As you're extending your repayment period, you'll be paying much more interest over the long term. It makes sense to look at all the alternative ways to reduce your debts before considering remortgaging to pay off debts.

But remember - you are increasing the size of your loan. This is not something you should do lightly. Depending on the mortgage you go for, this may mean that your monthly payments actually go up. You also need to remember that house prices can go down as well as up. If house prices fall sharply, that equity you have built up could quickly be eroded away, potentially even leaving you in negative equity. This is where the size of your outstanding loan is larger than the value of the property.

Being in negative equity can make it extremely difficult to remortgage or move home in the future. You could face significant exit fees for moving from your current mortgage to the new loan.

If you remortgage during the initial fixed or tracker period of your mortgage, then you will likely need to pay an early repayment charge ERC. An ERC is generally calculated as a percentage of the outstanding loan and so can be a significant outlay. In addition to the ERC, you will often have to pay an exit fee to cover the administration of closing your account. There will likely also be fees to consider. You can add this to the mortgage balance, though doing so will mean you pay interest on the fee, costing you far more overall.

There may also be fees associated with the legal side of the remortgage, though many lenders promise to cover these fees as part of their offer. Increasing the size of your mortgage may not be the only option available to you if you're looking to raise funds. The most straightforward option will be to use your savings since this will not involve having to arrange any additional credit. If you need smaller sums, a money-transfer or long-balance-transfer credit card may be a better choice.

If the main reason that you want to remortgage is to help a loved one buy a property, then there are a number of other methods worth considering. You could take out a joint mortgage with them, as your income would be considered alongside the main applicant, which may make it easier for them to borrow the required amounts. Alternatively, you could act as a guarantor. Remember, these options will mean that you are pursued for repayments should they fall behind. Contact us. Accept Cookies. Home buying with a helping hand Download our app to track every step of your home buying journey.

Register today. Can I remortgage my house to buy another property? How does remortgaging work to buy another property? Affordability Releasing equity in your house to buy another one means that your repayments would be significantly larger than they have been so far.

Self-employed If you have a different employment status i. How does remortgaging work? When I remortgage will all lenders use my credit score? Can I remortgage if I missed payments? 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. 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. 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.

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. 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. 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.. 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.

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. 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. This way you will still benefit from the full 2 years on the product.

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. Some will require proof of savings to cover the maternity period. Others may ask for future childcare costs. And how much are you looking to borrow in total? What is the total, approximate annual income of all applicants before tax?

Back 2 of 3 Next. Back 3 of 3 Send! No impact on credit score. Updated: September 24, What are you looking for? Remortgaging to buy another house Can you remortgage to buy another house? How to remortgage to buy a second property What you should consider Using other income sources for the application FAQs Speak to a remortgage expert.

Can you remortgage to buy another house? What you should consider First and foremost, consider working with a mortgage broker as they can help you find the best deal for your remortgage as well as the purchase of your new property, offering your expert advice and bespoke guidance every step of the way. There are many different types of property you could potentially buy with the funds you raise from a remortgage, and the main ones include… Let to buy properties This is where you rent out your current home to tenants in order to buy another property Buy to lets Raising money on your current property to buy a different property to rent to tenants Holiday lets This is where you buy a property to rent to people on a short-term basis for short breaks or holidays Holiday homes and second homes Using the money raised to buy a second property that you intend to use in addition to your current home Commercial property Raising money to buy a property that will be used by a business, such as a shop or an office.

If you currently own a commercial property, it will be possible to refinance this in order to buy another property. For more information on this, take a look at our Commercial Mortgages section.

Income and affordability The amount you earn will determine how much you can borrow when remortgaging or taking out a new mortgage on your second property. Affordability on buy to let and let to buy If you are remortgaging to buy a second property that you intend to rent out to tenants, or you intend to let your current property with a let to buy mortgage , affordability is based on the rental income the property can achieve, amongst other factors On a buy to let mortgage, the rental income needs to cover a certain percentage of the mortgage payments.

Rated 5 stars on Feefo. Using other income sources for the application If you are remortgaging to buy a new home you might want to use additional sources of income to show that you can afford the new loan.

Can you remortgage to buy another property with cash? Remortgaging if you are moving house Moving to a new house without selling your existing property is certainly possible.

Can I remortgage my house to buy another if I recently started a job? Are there age restrictions? Can I remortgage to buy another house with Early Repayment Charges to pay on my current mortgage?

Can I remortgage an investment property? Can I remortgage to buy property abroad? Am I able to remortgage inherited property? Can I remortgage a property I own outright to buy another one? Ask a quick question We can help! Related Articles A Complete Guide to Remortgaging Everything you need to know about remortgaging and how to remortgage.

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About the author Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. Find your perfect remortgage broker Get Started Call Now.