How Much Can You Remortgage Your House For? Key Factors to Consider

What Is a Remortgage and How Does It Work?

Before discussing how much you can remortgage your house for, let us address the basics. What exactly is remortgaging?

Simply put, remortgaging is replacing an existing mortgage with a new one while keeping the same property. This can either be with the lender you currently use or a new lender who will “buy out” your current mortgage. 

People also ask how early can you remortgage your property - but there is no one set answer for this. Generally, your mortgage will have a set period of fixed interest rate, after which you could be free to remortgage at any time, potentially allowing you to take advantage of a more competitive interest rate with a new mortgage.

Key Factors That Affect How Much You Can Remortgage

Here are some factors that will impact when you should remortgage - it is vital to consider them as it will help you make an informed decision. 

In Dubai, people looking to remortgage must pay a fee. This will be either 1% of their current home loan amount or AED 10,000 - whichever cost is lower.

Factors that will impact how much you can remortgage your house for include: 

• The headline interest rate of your current and new mortgage.

• The overall costs you will bear for remortgaging 

• Any exit penalties you may be required to pay for your current mortgage. 

• Your current financial circumstances, including your income, expenses and debt-to-income ratio.

• The current value of your property.

Reasons to Remortgage Your House

There are many reasons to remortgage a property, and these can vary depending on your circumstances.

Most commonly, people choose to remortgage to secure a lower interest rate than they are currently paying. This can significantly reduce their repayments. But other factors include:

• Consolidating other debts into the mortgage to reduce the overall repayments and interest paid.

• To release equity you have built in your home - this can be used to finance other goals.

• To pay off your mortgage sooner, which can help you save money in terms of monthly mortgage payments. 

Costs to Remortgage a Property

If you are trying to figure out, “How much remortgage can I get?”, it is crucial to consider the costs involved in remortgaging.

Understanding the costs associated can help you get a clearer picture of “How much remortgage can I get?”.

How to Calculate Your Remortgage Amount

Ultimately, the amount you can remortgage your house for depends on several factors, including your current property value, your income, expenses, debt-to-income ratio, and the lender's criteria.

Whilst there are various online calculators you can use to get an estimate, it’s difficult to provide a specific figure without assessing individual circumstances.

Consulting a mortgage advisor is the best way to determine how much you could remortgage for. They can guide you through the process, help you understand your options, and ensure you make informed decisions tailored to your financial goals.

Conclusion

Remortgaging can be a valuable financial tool for various reasons, whether securing a better interest rate, consolidating debt, or unlocking equity for other financial goals. Understanding the reasons to remortgage and the factors that influence how much you can remortgage for is essential to making the right decision.

If you’re considering how much remortgage you can get, remember that every situation is unique. Working with a professional mortgage advisor will ensure you receive the advice and guidance you need to navigate the process smoothly, assess the associated costs, and maximize the benefits of remortgaging.

This is where Engel & Völkers steps into the picture. Our team of expert mortgage advisors will guide you through the process and find the right solution for your circumstances.