A Guide to Remortgaging Your Home

At Towerstone, we provide specialist property accountancy services for homeowners, landlords, and property investors. This article explains what you need to know to make informed decisions around this topic.

This is one of the most common questions homeowners ask and it usually comes at a point of change. Your fixed rate may be ending, interest rates may have shifted, your income might be different, or you may want to release equity for improvements or other plans. Remortgaging can be a sensible financial move, but it is not automatic and it is not always the right choice. The key is understanding whether you can remortgage and whether you should.

The short answer is that most homeowners can remortgage their house. However eligibility depends on your current circumstances, lender criteria, and the state of the property. Remortgaging is about replacing your existing mortgage with a new one, either with your current lender or a different lender, and the process is governed by affordability rules, credit checks, and property valuation.

In this guide I will explain how remortgaging works in the UK, when you are likely to be able to remortgage, what can prevent it, and how to prepare properly. This is written to give you clarity rather than generic reassurance.

What Does Remortgaging Actually Mean?

Remortgaging means taking out a new mortgage to replace your existing one. You are not selling your house. You are refinancing the loan secured against it. People remortgage for several reasons including securing a lower interest rate, fixing payments for longer, reducing monthly costs, releasing equity, or changing the mortgage term.

You can remortgage with your existing lender through a product transfer or move to a new lender entirely. The right option depends on affordability, rates available, and how straightforward your situation is.

When Can You Remortgage?

You can usually remortgage at any time, but timing affects cost and choice. The most straightforward time is when your current fixed or tracker deal ends. At that point early repayment charges usually fall away and you can switch without penalties.

You can remortgage during a fixed period, but most mortgages include early repayment charges. These are often a percentage of the outstanding balance and can be significant. Whether remortgaging early makes sense depends on whether the long term savings outweigh the penalty.

Who Can Remortgage a House?

Most homeowners can remortgage provided they meet current lender criteria. Lenders will look at your income, your outgoings, your credit history, your loan to value, and the property itself. Even if you have never missed a payment, lenders must still apply modern affordability rules. These rules are stricter than they were in the past and are overseen by the Financial Conduct Authority.

Remortgaging is often easier than getting your first mortgage because you already have a track record. However it is not guaranteed.

Income and Affordability

Affordability is central to any remortgage. Lenders assess whether you can comfortably afford the payments now and in the future. They look at employed income, self employed income, pensions, and other regular income streams. They also consider your monthly commitments, dependants, and general living costs.

If your income has increased since you last took out a mortgage, you may find you have more options, better rates, or the ability to borrow more. If your income has reduced, remortgaging may be more limited. In those cases a product transfer with your current lender is often easier because it may not require full affordability reassessment.

Credit History and Remortgaging

Your credit history plays an important role. A clean credit record usually means access to the widest range of deals and the lowest rates. If your credit has worsened, perhaps due to missed payments or higher debt, options may still exist but choice is narrower and rates may be higher.

Many people assume that because they already have a mortgage they will automatically be accepted again. This is not always the case. Lenders assess applications based on current criteria, not past approvals. Checking your credit report before applying can help you spot issues early.

Loan to Value and Property Value

Loan to value is one of the most important factors in remortgaging. It is calculated by dividing your mortgage balance by the property value. Lower loan to value usually means better rates.

If your property has increased in value since you last borrowed, you may fall into a lower loan to value band. This can significantly improve the deals available to you. If values have fallen or if you have borrowed heavily, options may be more limited.

Most lenders will arrange their own valuation. This may be a desktop assessment or a physical inspection. You rarely need to pay for your own valuation unless the lender specifically requires it.

Can I Remortgage to Release Equity?

Yes, many homeowners remortgage to release equity. This means increasing your mortgage and taking the difference as cash. Common uses include home improvements, debt consolidation, helping family members, or buying another property.

The amount you can release depends on affordability and loan to value limits. While equity release through remortgaging can be useful, it increases your debt and interest costs. It should be considered carefully, especially if the funds are not being used to add long term value.

Self Employed and Remortgaging

Self employed homeowners can remortgage, but evidence is required. Most lenders ask for two years of accounts or tax calculations, along with tax year overviews. Some lenders accept one year, but options are more limited.

Consistency and clarity matter more than headline profit. If your income fluctuates or has changed recently, using a lender familiar with self employed cases can make a big difference.

Buy to Let Remortgaging

Remortgaging a buy to let property follows different rules. Lenders focus primarily on rental income rather than your personal salary. They apply stress tests to ensure the rent covers the mortgage at a higher notional rate.

If the property is owned by a limited company, fewer lenders are available and rates may be higher. Personal guarantees from directors are common. Remortgaging is still possible, but preparation matters.

Age and Remortgaging

Age alone does not stop you remortgaging. What matters is income over the mortgage term. Lenders will look at retirement age and expected retirement income. Mortgage terms may be shorter or aligned with retirement plans. There are also later life mortgage products where standard remortgaging is not suitable.

What Can Prevent a Remortgage?

Common barriers include affordability issues, recent credit problems, high loan to value, property issues such as short leases or unusual construction, and existing mortgage arrears. In many of these cases a product transfer with your current lender remains possible even if switching lenders is not.

The Remortgaging Process

The process starts with reviewing your current mortgage, including your rate, balance, and any early repayment charges. You then check your credit profile and gather income documents. Next comes comparing deals, either directly or through a mortgage adviser.

Once you apply, the lender assesses affordability and values the property. Legal work follows, often handled by a solicitor provided by the lender. Completion usually takes between four and eight weeks, faster for simple product transfers.

Costs of Remortgaging

Remortgaging can involve arrangement fees, valuation fees, legal fees, and early repayment charges. Many deals include free legal work or cashback. It is important to look at the total cost over the deal period, not just the headline rate.

Should I Use a Mortgage Adviser?

Many people benefit from professional advice, especially if circumstances are not straightforward. A whole of market adviser can access more lenders, navigate complex cases, and help you avoid unsuitable products. Fees vary and many advisers are paid by commission from lenders.

What If I Cannot Remortgage?

If remortgaging is not possible, options may include staying with your current lender on a product transfer, moving temporarily to a variable rate while improving affordability, or reviewing finances and trying again later. Doing nothing and remaining on a high standard variable rate is rarely the best long term option.

Final Thoughts

If you are asking whether you can remortgage your house, the answer is usually yes, but the detail matters. Remortgaging works best when it is planned, timed, and matched to your circumstances. It is not just about chasing the lowest rate. It is about affordability, stability, and long term impact.

Reviewing your mortgage regularly helps ensure it continues to support your goals rather than quietly working against them.

You may also find can i sell a house with a mortgage and can you buy a house at auction with a mortgage useful. For wider guidance, explore our mortgage guidance hub.