How Much More Can I Borrow When I Remortgage?

Ever wonder if you could pull more money out of your home when you remortgage? You're definitely not alone. Loads of homeowners in the UK try to unlock extra cash when their fixed mortgage deals end, especially now that everything seems to cost more than last year.

Before you get too excited, it’s not as simple as just asking for a bigger chunk. Lenders want to know how much equity you’ve built up, what your income looks like, and whether your budget can handle bigger payments. There’s no magic number that fits everyone. Someone with loads of equity and a solid salary might bump up their loan by tens of thousands, while someone else could get turned down flat.

You also want to watch out for borrowing too much. If you stretch too far, you could get stuck with painful repayments or mess up your credit. So before you decide how much extra to borrow, let’s break down what really matters in your lender’s eyes.

• Why Remortgage for More?
• What Lenders Look At
• How Much Extra Can You Actually Borrow?
• Reducing Your Borrowing Risks
• Tips for Getting the Best Deal
• Common Mistakes and How to Dodge Them

Why Remortgage for More?

Think of remortgaging as a chance to put your home's value to work. Homeowners tap into extra borrowing for different reasons, but it's all about making their remortgaging decision really count. For some, it's funding a major renovation—new kitchen, loft conversion, or that swanky garden office everyone's talking about. Others look for breathing room by paying off expensive debts or helping kids with a house deposit.

Here’s a quick rundown of the most common motives people have for borrowing more when they remortgage:

• Home improvements – The big one. More than half of those who boost their borrowing use it for fixes or upgrades, according to UK Finance.
• Consolidating debts – Swapping pricey credit card or loan debt for a (usually) cheaper mortgage rate.
• Big expenses – Covering the cost of school fees, a big holiday, a new car, or even starting a business.
• Helping family – Gifting money to kids or grandkids for home deposits is becoming more common every year.

Lenders are paying attention to why you want more money. If you’re just looking to splurge, they might say no. But if it’s for value-boosting improvements or sensible financial moves, you’re more likely to get what you ask for. Check out this little snapshot of popular uses for extra borrowing:

If you have seen your home's value shoot up since you bought it, remortgaging to borrow more can be an easier way to boost your cash flow than taking on a personal loan. Just remember—you’re betting your house on your ability to pay it back, so only do it when it genuinely makes sense.

What Lenders Look At

Lenders don’t just hand out bigger mortgages to anyone who asks. They've got pretty strict rules and a checklist they go through before giving you more money. Here’s what usually goes under the microscope:

• Home equity: This is your secret weapon. It’s the gap between your home’s value and what you still owe on your mortgage. Lenders usually want you to keep at least 15-20% equity after remortgaging, but the sweet spot for better deals is about 40% equity (so, a 60% loan-to-value ratio or less).
• Income and outgoings: They’ll study your payslips, tax returns, and bank statements. If you’ve just changed jobs or your pay varies a lot, expect extra questions. Big monthly bills or debts will drag down how much you can borrow.
• Credit history: Missed payments, payday loans, or county court judgments? These make lenders more suspicious, so double-check your credit report before you apply.
• Property type: Lenders love boring, standard homes. If your place is above a shop, made from unusual materials, or in a flood-prone area, you might get less or face higher rates.
• Current interest rates: Higher rates mean higher monthly payments, which can shrink the amount you qualify for—even if nothing else has changed for you.

Here’s a quick snapshot of typical lender requirements:

One more thing: if you’re self-employed or have a side hustle, expect to show at least two years of accounts or tax returns. Lenders want proof you can handle the extra debt long term.

Bottom line? The more boxes you tick, the more you can usually borrow when you remortgage.

How Much Extra Can You Actually Borrow?

The big question: how much more can you actually get when you remortgage? The answer starts with your home’s current value, your remaining mortgage balance, and how strict your lender is. Lenders usually look at your equity—the difference between what your home’s worth and what you still owe.

Most lenders cap the total you can borrow around 85% to 90% of your home’s value. So, if your house is valued at £300,000 and you owe £180,000, you might be able to borrow up to £90,000 extra (if your lender’s limit is 90%). But a lot depends on your income, debts, and how comfortable the lender is with your financial story.

*Assumes lender is happy to go to 90% LTV and your income supports a bigger loan. Your real answer might be less if your repayment history or income isn’t solid enough.

Speaking of income, most lenders want your total debts (including the new mortgage) to be affordable—usually capping your borrowing at around 4 to 4.5 times your yearly salary. So even with tons of equity, your income could be the thing that limits you. If you earn £35,000 a year, you might get up to £157,500 across all your borrowing—assuming you meet affordability checks. Add in childcare, loan repayments, or credit cards, and your new borrowing could shrink.

• Your remortgaging amount will always be the lower of your equity position or what your income can support.
• Lenders run strict affordability checks, especially after rule changes in 2023, so expect lots of paperwork.
• If your credit score's taken a hit since your last mortgage, it might lower your extra borrowing—sometimes by thousands.

Thinking about fixing up your house or clearing old debts? Be ready to explain exactly why you want the extra and show any supporting documents if a lender asks. Some are more willing than others, especially if you're using the cash for home improvements versus just splurging.

Reducing Your Borrowing Risks

Going for a bigger mortgage can feel tempting, but it pays to be smart about it. You really don’t want to end up sweating every monthly payment or risking your home if things go sideways. Here’s what to focus on if you want to keep your head well above water.

First off, know that UK lenders are strict with their affordability checks now—especially since changes to the rules in 2014. They look at your income, debts, regular spending, and even stuff like child support payments. In fact, the Financial Conduct Authority (FCA) says lenders can’t just go by what you tell them. They check bank statements and credit reports, and test what’d happen if rates jumped by 3 percentage points. Passing these checks helps, but you should also stress-test yourself. Could you cover repayments if your salary dropped or interest rates shot up?

Don’t forget about the borrowing power that changes with your loan-to-value (LTV) ratio. The lower your LTV—that is, the more equity you have—the better the rates and the less you’ll risk owing more than your home is worth if prices dip. Here’s a quick table to show how LTV bands affect average fixed-rate offers as of May 2025:

Your regular outgoings can trip you up, especially subscriptions and credit card spending. Lenders might offer you less if your budget looks squeezed. Before you apply, cut down on unnecessary expenses a few months in advance. If possible, smash down existing debts—that’ll boost your chances of approval and lower your monthly payments.

If you’re self-employed, things can get trickier. Lenders usually want two years of accounts and might ask for an accountant’s letter. Show steady income, and keep your business and personal finances tidy.

• Always ask your lender for a breakdown of fees and see if early repayment charges (ERCs) apply for switching away from your old deal.
• Don’t just look at the monthly payment—factor in the total cost with fees, insurance, and any new setup costs.
• Consider a 5-year fixed deal if you want predictability, or flexible features if your income changes often.

Lastly, chat with an independent mortgage broker if you’re unsure. They can spot deals you won’t find on your own and help you sidestep common traps.

Tips for Getting the Best Deal

If you want to get the most out of remortgaging—whether it’s a lower rate, more flexible terms, or a bigger loan—don’t just take the first offer that lands in your inbox. Use these moves to boost your odds of snagging a deal that won’t come back to bite you.

• Check your credit before you start shopping. Lenders dig into your credit history every time. If you’ve missed a bill or your credit's taken a hit, fix it before you apply. Even a 20-point bump can nudge you into a better bracket for mortgage rates.
• Get multiple quotes. Don’t just talk to your current lender—pull quotes from at least three other banks or building societies. Even half a percent difference could save you thousands over the life of your loan.
• Use a broker if you’re not sure. A mortgage broker often knows which lenders will give better terms if you’ve got quirks in your income or a less-than-perfect history.
• Watch out for fees. Some deals look great on the surface but hammer you with hefty arrangement or valuation fees. Always compare the total costs, not just the interest rate.
• Take full advantage of your remortgaging “loan-to-value” (LTV) band. Common bands are 60%, 75%, and 85%. If by paying down a bit more you can drop to a lower LTV band and score a better rate, do it if you can swing it.

Here’s a quick look at how monthly repayments shake out at different interest rates, which helps highlight why getting even a tiny cut in your rate makes a big difference:

Before you sign, ask yourself—can you really handle the higher payments if the rate jumps in a few years? If things feel tight, it’s better to lean on the cautious side now than risk trouble later. Make lenders work for your business; they actually expect you to push back a little.

Common Mistakes and How to Dodge Them

Getting swept up in the idea of pulling out extra cash during a remortgage is easy, but there are a few classic mistakes that can end up costing you. Let's break down the most common slip-ups and how you can avoid them.

• Overestimating Your Property Value: It's easy to get carried away with how much your home's worth. Lenders use their own valuation, not what you see on property websites. If you assume a high value, you could be setting yourself up for disappointment or even a rejected application.
• Stretching Your Finances Too Thin: Just because the bank lets you borrow more doesn't mean it's a smart move. Extra borrowing means higher monthly payments. Miss a couple of payments, and your credit score can tank fast. Only go for what you can comfortably afford, even if that means less than what’s on offer.
• Ignoring Fees and Penalties: There’s often an early repayment charge if you’re still in your fixed period. Some lenders also hit you with new arrangement fees, which eat into the cash you thought you were unlocking. Always ask the lender for a full breakdown of costs before you move forward.
• Chasing Low Rates Without Checking Terms: A cheap headline rate might be hiding expensive fees or a much higher rate after the first year or two. Look at the full picture, including how much you’ll pay back in total over the term.
• Not Shopping Around: Sticking with your current lender is convenient, but you could miss out on better deals elsewhere. Use comparison tools or talk to a mortgage broker to find out what’s really out there. Sometimes an extra ten minutes can save you thousands in the long run.

So if you want to boost your remortgaging success, make sure to dodge these pitfalls. Be realistic with numbers, keep your repayments manageable, check for hidden costs, scrutinise the terms, and don’t settle for the first offer you see. That way, you get the cash you need without nasty surprises down the road.