Is Remortgaging Difficult?

If you own a home in the UK, you’re probably well aware of the concerns around fixed-rate mortgage deals coming to an end, interest rates staying unpredictable, and overall household costs continuing to rise. It’s at this point that many homeowners start thinking about remortgaging their home, whether that’s to get a better interest rate, lower their monthly repayments, or release cash from their property.

If you’re unsure about what to expect from the remortgaging process, how difficult it can be, or whether there’s a faster, more hassle-free alternative, our guide explains everything you need to know, helping you make informed decisions about your finances and property.

What does it mean to remortgage your home?

Remortgaging your home essentially means switching your current mortgage to a new deal, either with your existing lender or a different one. It can help you to:

• Lower your monthly mortgage payments
• Get a better interest rate
• Release equity/cash from your home
• Change mortgage type
• Consolidate other debts

Who can remortgage their home?

In the UK, most homeowners can remortgage, but their eligibility depends on a few key factors. Lenders look at your current financial situation and your property, rather than how long you’ve owned your home.

Homeowners with an existing mortgage

If you already have a mortgage on a residential property in the UK, you’re eligible to apply for a remortgage whether you stay with your current lender or switch to a new mortgage provider. You don’t need to be at the end of your deal, but early repayment charges may apply if you switch too soon.

Homeowners with stable income

You’re more likely to be approved to remortgage if you can show regular employment income, self-employed income or income through a pension scheme as lenders want to see that you can afford repayments at today’s interest rates.

Homeowners with sufficient equity

Most lenders prefer at least 10–15% equity in the property and lower loan-to-value (LTV), so if your property has increased in value since you bought it, this works in your favour. Though, approval depends on affordability, not just how much equity you have.

People looking to release equity

You can remortgage your home to raise money for home improvements, consolidate debts or help family members financially.

How difficult is it to remortgage?

The legal checks and assessments throughout the remortgaging process can often feel more like applying for a brand new mortgage rather than simply switching deals.

The time it takes to remortgage can become a strain, especially to those who need to release cash or lower monthly mortgage repayments immediately.

1. Lenders treat it like a new mortgage

Even if you’ve been paying your mortgage for years, lenders still look at your remortgage application as if it’s new. They check:

• Your current income and employment details
• Your credit score and debt commitments
• Your monthly expenses and affordability
• Your property’s value and loan-to-value (LTV)

This might be moredocumentation than you would expect, especially compared with when you first bought your home.

2. Strict mortgage affordability & credit score checks

With interest rates rising, lenders need to check whether you can currently afford your mortgage repayments, even if you’ve paid them in the past. If your income has changed (e.g., new job, self-employment), or if your credit score has dipped, you might face additional questions or stricter criteria. This can lead to homeowners considering selling their home to pay off debts all together.

3. Property value and loan-to-value

A key part of remortgaging is the loan-to-value (LTV) ratio, which is the percentage of your home’s value that your mortgage represents. If your home has risen in value and you’ve paid down the loan, your LTV might be favourable, which lets you access better rates. But if the value has fallen, you could have negative equity and this makes remortgaging very difficult, because most lenders don’t want to lend more than 90–95% of the property value.

For homeowners in negative equity, options are limited to staying with your current lender, waiting until property values recover or selling quickly for cash.

4. Remortgage costs and timings

It’s important to check how much it costs to remortgage before you start the process. You’ll need to factor in costs like early repayment charges (ERCs) if you leave your current deal early, valuation fees, conveyancing/legal fees and broker fees. These costs vary by lender and personal circumstances, but being prepared helps you avoid surprises!

Sell your house to release cash fast

Overall, remortgaging your home is often easier if;

• Your income is stable and well-documented
• Your credit score is strong
• Your property value is solid

However, remortgaging your home can be more complex if;

• Your income has changed recently
• You’ve had missed payments or have issues with your credit score
• You’re in negative equity
• You’re trying to extract a lot of equity

If the process of remortgaging seems too slow or difficult, especially if you need to free up cash quickly, then a cash house buyer might be a better alternative.

At Sell House Fast, we buy properties as they are, so you can close the sale as quickly as you require without the need for a mortgage approval. This can be especially appealing if your remortgage application faces delays due to documentation, valuation issues, or strict lender criteria.

Sounds like the solution you need? Get your free, no obligation cash offer today.