The amount you can borrow when remortgaging depends on your income, outgoings, credit history and current property value. Most lenders start with an income multiple, often between four and four-and-a-half times salary, but this is only part of the assessment. Detailed affordability checks are applied to ensure repayments remain manageable, even if rates rise.
If your property has increased in value since purchase, your loan-to-value ratio may have improved. This can provide access to more competitive products or allow additional borrowing through capital raising.
Borrowing more increases your mortgage balance and monthly payments. Lenders will stress test affordability carefully before approving any additional funds, so reviewing the long-term impact is important before proceeding.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.
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