How Much Can I Borrow to Remortgage?

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How much extra can I borrow?

Can I remortgage and borrow more with bad credit?

How much you can borrow to remortgage will depend on how much your property is currently worth, how much you currently owe, your age, how much income you have, and your existing credit commitments.

You can get an idea of how much your property is currently worth by looking on websites such as Rightmove and Zoopla, both sold, and for-sale prices can be found here. Have a search for close by properties that are a similar size and condition to yours.

Finding out how much you owe for your remortgage will be on your latest statement, online account, or your mortgage broker will know. This might be less than you think if you have made overpayments during the term of your mortgage.

Your lender will take in to account your ages when deciding how much you can borrow on a remortgage application.  This is because they’ll need to endure that your mortgage is affordable to you both now and in the future including retirement.  If you are considering taking your mortgage into retirement, there may be a more suitable age 50+ mortgage product for your needs.  

How much extra can I borrow?

How much you can borrow to remortgage will also depend on your affordability, this will consider household income, the number of dependents that you have, any debts or monthly commitments that you have.  It’s likely that the more disposable income you have the more you will be able to borrow when remortgaging.

You’ll have to prove to the lender that you can afford to pay your mortgage both now and, in the future, if interest rates increased. Lenders will use their historic data and lending statistics to ascertain what is affordable to you and how much they will lend. 

Can I remortgage and borrow more with bad credit?

If you have bad credit, irregular income, or have missed payments, this could reduce the amount you can borrow on a remortgage application.   The worse your bad credit is, as a rule, the less you will be able to borrow on a remortgage application.

Also, how much you can borrow will depend on if you are looking to remortgage to capital raise for any reason.   If you are looking to remortgage for debt consolidation, you might find that a lender will offer you a lower loan to value ratio than if you were looking to remortgage for home improvements due to the increased risk that is involved for them.

A mortgage broker will listen to your situation and recommend the best lender for you that will offer you the maximum borrowing required.  Bear in mind that mortgage rates tend to be higher if your loan to value ratio is increased.

Remortgage rates work in bands, therefore, typically, a 90% remortgage will be at a higher rate than a 75% remortgage due to the risk being reduced to the lender.  If for any reason you failed to meet your monthly payment and they had to repossess then they’re likely to get their full loan back plus any interest owed and estate agent fees the more equity there is available.   

Written by
Malcolm Davidson
Managing Director of UK Moneyman Ltd.
MAQ & CeRER Qualified

27th March 2024

About the Author

Malcolm Davidson

Managing Director of UK Moneyman LTD

Malcolm is one of the UK’s most well-known and respected Mortgage Advisors. He is passionate about providing a 5* customer experience and he has also trained and mentored dozens of fellow Advisors in a career that is now in its third decade.

In addition to his day to day duties as Managing Director, Malcolm still gives out mortgage advice and feels lucky that his job is also very much his hobby.

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