Can I Remortgage My House?
Many homeowners are able to remortgage without much hassle, even if their circumstances aren’t exactly typical. The fact of the matter is that the mortgage market is flexible, and lenders are generally open to a wide range of applications.
In this guide, we’ll explore who can remortgage, when it makes sense, and how different personal situations can still fit the bill. We will answer:
Can I Remortgage If I Own My House Outright?
If you own your home outright then you're in an excellent position to take out a new mortgage. This type of property, often referred to as ‘unencumbered’, carries no existing home loan, meaning you have full equity. That equity can be used as security to access a new mortgage and unlock some of the cash tied up in your home.
Remortgaging an unencumbered property can be a cost-effective way to raise funds. Compared to options like personal loans or credit cards, mortgage rates are usually lower, making it an attractive route for financing major expenses - whether you're planning home improvements, assisting a relative with a house deposit, or even buying a second home.
The deals available to you will largely depend on how much you wish to borrow relative to your home's current value, known as the loan-to-value (LTV) ratio. It's worth noting that some lenders may treat this scenario differently from standard remortgages. For example, a few might offer you their purchase mortgage rates instead of those reserved for remortgaging.
Can I Remortgage If I Have a Shared Ownership Property?
You can remortgage a shared ownership home, but it comes with a few added steps. In shared ownership, you typically own a portion of the property, while the remaining share is held by a housing association or local authority. Because of this setup, your conveyancer will need to carry out extra legal checks before the remortgage can go ahead.
One of the key requirements is getting consent from the housing association or local authority, since they have a legal stake in the property. Your conveyancer must notify them of your remortgage plans, provide details about your new mortgage, and secure their formal approval before anything can proceed.
In most cases, you're only able to remortgage against the share of the property you own - not the full value of the home. Although, some lenders do allow you to borrow additional funds if you're planning to ‘staircase’, i.e., buy a larger share of the property. Whether that’s possible depends on your income, credit history, and the housing association’s agreement.
Can I Remortgage If I’m in a Fixed Term?
Technically, you can remortgage during a fixed-rate period. There’s nothing legally stopping you. But the real question is whether it makes financial sense to do so.
Exiting a fixed-term mortgage early usually comes with significant costs, the biggest being an early repayment charge (ERC). This is often calculated as a percentage of your remaining loan balance and typically depends on how much time is left in your fixed term. As a rule, the earlier you exit, the higher the charge.
In addition to the ERC, you may face other fees, such as an exit fee or a deeds release fee. And if you’re switching to a new lender, you’ll also need to factor in the usual remortgaging costs like valuation and legal fees.
Can I Remortgage If I’ve Started a New Job?
Starting a new job doesn’t automatically disqualify you from remortgaging, but it can make things a bit more challenging, especially if you're still in your probationary period. Lenders may view newly employed applicants as higher risk since your long-term income hasn’t yet been firmly established.
Some providers prefer applicants to have been in their current role for at least six months, while others might request up to three years of employment history to assess income stability. That said, not all lenders follow the same rules, and some are more flexible if you’re in a permanent role with a signed contract.
If you’ve consistently kept up with your mortgage payments and meet other important criteria, like having a good credit score, you may still qualify for a competitive remortgage deal. It’s all about showing that you’re financially reliable, even if your employment situation has recently changed.
Can I Remortgage If I'm Self-Employed?
Self-employed individuals can remortgage yet it often takes a bit more planning and paperwork. The biggest hurdle is usually proving your income, as lenders want to be confident you can afford the repayments.
If you were already self-employed when you took out your original mortgage and your income has remained stable, you're likely in a good position to remortgage, even with a new lender.
However, if you’ve become self-employed more recently, lenders will typically want to see at least three years of accounts to assess your income consistency. Albeit, some providers are more flexible and may consider applications with just one or two years’ worth of accounts.
If you’ve been self-employed for under a year - and therefore have no accounts - then your options are more limited, but you might still be able to switch to a new deal with your current lender.
Can I Remortgage If I’m on a Zero-Hour Contract?
Yes, you can remortgage while on a zero-hours contract, particularly if you have a solid track record of making repayments on time. That existing history can work in your favour when approaching lenders.
However, being on a zero-hours contract can make things trickier with some mainstream lenders. Because your income isn’t guaranteed, they may see your employment as less stable, which can affect their willingness to offer you a new deal. The good news is that there are specialist lenders who take a more lenient view. They might be more interested in your overall income pattern, consistency over time, and how well you've managed your finances rather than the type of contract you’re on.
To strengthen your application, be prepared to provide several months (or even years) of payslips, bank statements, and any other evidence which shows your income is regular and sufficient to cover your mortgage payments.
Can I Remortgage If I’m on Maternity Leave?
Remortgaging while on maternity leave is possible, yet lender policies can vary quite a bit. The main consideration is your income, which often decreases during leave and may impact how much you can borrow.
Lenders will typically want a clearer picture of your financial situation, both now and in the near future. That means being upfront about your current income and your plans for returning to work. Since your payslips will show maternity pay, most lenders will ask for additional documents to better assess your long-term affordability.
You may be asked to provide pre-maternity payslips, a letter from your employer confirming your return-to-work date, and what your salary will be once you're back. In many cases, this is enough to satisfy the lender’s requirements and move forward with your application.
Can I Remortgage If I'm Over 60 or Retired?
It’s possible to remortgage in your 60s or during retirement, though there are a few extra things to think about. Lenders will still need to see that you can afford the monthly repayments, which means demonstrating a steady income, even if you're no longer working.
Most lenders will take into account income from state pensions, workplace pensions, or private pension schemes. Although, if you rely on a self-invested personal pension (SIPP) or manage your income through a pension drawdown, it may be trickier. Not all lenders accept these types of income, so your options might be a bit more limited.
Age limits also differ between lenders. Some focus on how old you are when you apply, while others look at how old you’ll be when the mortgage ends. Many lenders prefer the mortgage to be repaid by the time you turn 85, which means shorter terms if you're applying in your mid-60s or 70s. That said, there are specialist lenders who have no maximum age limit, but may restrict you to retirement interest-only mortgages.
Can I Remortgage If I Want to Consolidate Debt?
Remortgaging to consolidate debt is an option, yet it comes with important considerations. Many lenders do allow it, but they often place limits on how much you can borrow based on your home’s value, and their approach may vary depending on the type and amount of debt you're looking to consolidate.
One thing to keep in mind is that by rolling unsecured debts (like credit cards or personal loans) into your mortgage, you're turning them into secured debt. This means your home is now at risk if you fall behind on repayments.
While remortgaging might offer a lower interest rate compared to unsecured borrowing, extending the repayment period over the life of your mortgage could actually result in paying more interest overall. Before moving forward, it’s essential to weigh the long-term costs and risks.
Speak to a Mortgage Broker
Deciding whether to remortgage can be challenging, but that’s where a mortgage broker comes in. They’ll search the entire market to find the best deal tailored to your needs and guide you through every step of the application process, ensuring your chances of approval, no matter your situation.
At The Mortgage Genie, we’ve assisted thousands of clients in securing the ideal remortgage, even in complex cases. Get in touch with us today at 01915809890 to begin your journey. And why find out how much you could save on repayments right now by using our remortgage calculator?
This information is a guide only and should not be relied on as a recommendation or advice that any particular mortgage is suitable for you. All mortgages are subject to the applicant(s) meeting the eligibility criteria of the specific lender. You should make an appointment to receive mortgage advice which will based on your needs and circumstances.