Not many people are, but when you are mortgage-free it’s a fantastic feeling, knowing all your hard work has paid off. However, life can always throw up a few occasions when it may be necessary to Remortgage a house that you own outright.
Remortgaging gives homeowners access to a big lump sum and because the loan is secured against your property, you could get the money at a lower interest rate than other types of finance. Of course, you will be required to pay back the loan in full over the course of the term, and just like a mortgage, you may lose the house should you fail to.
Yes, of course you can. However, as with any mortgage applications, there are certain eligibility and affordability criteria. For example, with other Remortgage applications you may have made in the past, the lender will look at the following:
The Value of your House
The amount you want to borrow
Your ability to repay the mortgage debt
Also, the lender will want to know what you intend to do with the money. Some common examples that lender tend to accept are buying a second house or renovating your current one. If you plan on investing the funds into a business, for instance, you may struggle to get a mortgage offer.
Usually, the highest LTV you tend to get when remortgaging on a house you already owe is 80%, meaning that the lender will give you £80,000 for every £100,000 it is worth. However, the maximum amount will depend on your personal circumstances and how you intend to use the money.
For instance, you may be retired and wanting to renovate the house, but the lender may have concerns about how you might afford the repayments, which may decline the application or offer you a smaller loan – reducing the LTV and their risk.
In the same way you'd Remortgage any property. You can go get in touch with your old lender, but there is no real advantage to this. However, it takes 10 minutes to compare exactly what deals you could get from across 90 lenders.
Once you have found the deal that best suits your requirements, we can help you apply – for free. You simply need a few initial details, such as Proof of your house’s address, Proof of your ID, Previous 3 months' bank statements, Previous 3 months' wage payslips