Remortgage Limits: What You Can Borrow and When It Makes Sense

When you remortgage, the process of switching your existing mortgage to a new deal, often with a different lender. Also known as mortgage refinancing, it’s not just about getting a lower rate—it’s about unlocking cash, reducing payments, or adjusting your loan term. But there’s a limit to how much you can borrow, and that limit isn’t just based on what you want—it’s tied to your home’s value, your income, and your credit.

Your loan-to-value ratio, the percentage of your home’s value that a lender is willing to lend you. For most UK lenders, the max is 80% to 90% of your property’s current market value. So if your house is worth £300,000 and you still owe £150,000, you might be able to borrow up to £270,000 (90% of value), giving you £120,000 in cash after paying off your old mortgage. But lenders don’t stop there. They also look at your income, how much you earn and whether it’s stable enough to cover new monthly payments, your credit score, a number that shows how reliably you’ve paid bills in the past, and your existing debts. A high debt-to-income ratio or a recent missed payment can shrink your limit—even if your home value is high.

Some people think remortgaging is only for saving on interest, but it’s also a tool for home improvements, debt consolidation, or even funding retirement. If you’ve owned your home for years, you’ve likely built up equity—the difference between what you owe and what your home is worth. That equity is your leverage. But pushing too close to the max limit can be risky. If property values drop, you could end up in negative equity. And if your income changes, a higher monthly payment could become unmanageable. That’s why smart borrowers don’t just chase the highest number—they look for the right balance between cash access and long-term safety.

Below, you’ll find real examples of how people have used remortgaging in the UK—from those who saved thousands on interest to others who used equity to pay off credit card debt or fund renovations. These aren’t theoretical guides. They’re practical stories from people who faced the same limits, questions, and choices you’re dealing with now.