Can I Borrow More When I Remortgage?
In this guide, we’re looking at whether you can borrow more when remortgaging.
When you remortgage you can increase your loan, borrowing more money. This will mean that you have more money to pay back. You will be asked how much you wish to borrow and what you’re looking to use the money for. For instance, you may decide you want to complete some home improvements. In some cases, you may be asked for proof of what you plan to spend the loan money on.
Common reasons for borrowing more money when remortgaging include:
- Home improvements
- Debt consolidation
- Car purchases
- Raising capital for a second home
- School fees
- Legal fees
Options for borrowing more
- Second-charge mortgage: This type of mortgage allows you to borrow more by using the value of your property as collateral. You will need a sufficient amount of equity to apply for this type of loan. You can calculate your equity by simply deducting any leftover mortgage payments from the current value of your property.
- Further advance: This involves borrowing more money from your current lender. This can be a quick, straightforward way to borrow more when remortgaging. It can also provide lower interest rates than a personal loan.
Should you borrow more?
Remortgaging to borrow more money can be a cost-effective solution. However, this can depend on your financial circumstances and goals. It’s best to get advice from a mortgage broker. As with any mortgage decision, you will need to pass the lender’s affordability checks. However, a mortgage broker can assess and advise on the likelihood of securing the loan you want before you apply.
Contact our remortgage experts to discuss your options for borrowing more. We offer flexible appointments and are Whole of Market, ensuring you have access to the right deal for your circumstances.
*You may have to pay an early repayment charge to your existing lender if you remortgage.
