Common Questions on Remortgaging your Home

Remortgaging your home can be a great way to save money, with many people opting to remortgage to get a better deal. Whatever your circumstances or reasons to remortgage, there is always a chance that a lender will consider your application. Below is the iam Mortgages guide to commonly asked questions associated with remortgaging a property. If the answer to your question isn’t listed below, get in touch with our helpful team of mortgage experts using our enquiry form.

I own my home and have no mortgage – can I remortgage?

If you own 100% of the equity in your home and have no mortgage, it is very likely that you will be considered for an application to remortgage. This will however depend on the amount that you’d like to borrow in relation to your property’s value. This is known as the loan to value (LTV) ratio. If you decide to remortgage, you must ensure that you can keep up with monthly payments and meet the lender’s requirements. Our mortgage advisors at iam mortgages can assist you in finding the best lender for your circumstances.

I’m retired – can I still remortgage?

It is likely that you may find it more difficult to secure a remortgage deal if you are 70 or older. Some lenders will accept applications from those who are 60 and over, but many will not be keen on the idea of someone paying off a mortgage into their retirement and old age. Speak to our iam Mortgages advisors on possible lenders that could consider applications from retired people.

Can I remortgage my home if I’m self-employed?

The problem lenders have with those that are self-employed is that their wages are rarely fixed and their income can fluctuate, making them a greater risk. To remortgage as a self-employed person, you’d need to provide evidence to a lender that you can afford the repayments and that your income is stable. This is especially the case if you’ve been self-employed for a short amount of time. If you are not on PAYE, many lenders will take the view that you are self-employed.

My property has shared ownership – can I still remortgage?

To do this, you’d require a specialist lender who can offer a shared ownership mortgage. Your eligibility will depend on your circumstances. Our mortgage advisors at iam Mortgages can assist you in finding a specialist shared ownership mortgage lender.

I have negative equality – what are my chances of remortgaging?

If you have negative equity, this means that the property you own is less in value than the size of your mortgage due to falling house prices. Some lenders offer retention products that can help assist those in negative equity. Making frequent overpayments on your mortgage can help reduce negative equity. Speak to us at iam Mortgages today if you need advice on remortgaging with negative equity.

Can my current lender offer a remortgage deal?

Absolutely – your current lender will not want you to switch from them, and typically most lenders offer a variety of retention schemes. You can compare these with other remortgage rates through iam Mortgages to help you find the best deal.

Is it possible to remortgage when you have a fixed term mortgage and your current deal hasn’t ended yet?

You can remortgage before your deal ends, even if your current deal is a fixed term. This isn’t however always the best idea, as you may incur early repayment charges from your current lender. Make sure you review your circumstances carefully. At iam Mortgages we can advise you on whether or not to remortgage based on your current circumstances. In some cases, early repayment charges can be avoided. Our advice is completely free.

Will lenders accept my remortgage application if I have changed my job?

If you have started a new job and want to remortgage, you might not get a good variety of lenders offering you deals. You might be asked to meet particular criteria in relation to your new job, i.e. passing a probation or being in the new job for a set number of months. This is mainly because new jobs carry an element of risk for lenders. Contact us at iam Mortgages today if you need further advice on remortgaging after a job change.

My credit rating is poor – can I still remortgage?

If you contact us at iam Mortgages and send a copy of your credit report, we will be able to advise you on the best lender for you if you have a poor credit rating. While many lenders may not consider you, it doesn’t mean that every single one will dismiss your application.

I need to pay off some debt – is remortgaging my home the best option?

If you are remortgaging to pay off debt, many lenders will place restrictions on the amounts you can borrow. This will however depend on the value of your property, and lenders will vary on their policies. Note that if you add an unsecure debt on to your mortgage, the lender can take your home from you if you do not keep up with your regular payments. Remortgaging to pay off debt is a decision that shouldn’t be taken lightly. Talk to us at iam Mortgages and fill in an enquiry form for more information and advice on your options.

I would like to remortgage to buy someone else out of my property – can I do this?

This is possible, but you may be limited to borrowing 80% LTV. You would need to look carefully at your finances to see if you could afford the mortgage payments. Some lenders offer a service in which they will legally transfer the equity over to you, but some may not and you may have to use a solicitor. You will have to therefore pay additional legal fees, which should always be considered.

I have a help to buy mortgage – can I still remortgage?

Very few lenders will let a person with a help to buy mortgage remortgage their home, but it isn’t completely out of the question. If you need help finding a lender who will give you the option to remortgage, contact us at iam Mortgages using our enquiry form.

If your question isn’t on this page, get in touch with our mortgage experts at iam Mortgages by filling in our simple enquiry form. We can advise on a range of topics in relation to remortgaging your home, helping you make the right decision for your current circumstances.