Can I remortgage to borrow more?

Up to 800,000 UK homeowners could be paying more than necessary for their mortgage, said an article in Homes & Property recently. They could be saving up to seven weeks’ worth of earnings simply by remortgaging, claimed the magazine.

A similar point had been made by Forbes magazine on the 22nd of April 2020, when it referred to the Bank of England’s reduction of the base lending rate to 0.1% on the 19th of March and the subsequent fall in mortgage rates generally.

Reasons to remortgage

Forbes argued that the fall in interest rates allowed many mortgage holders to remortgage their home to enjoy a more favourable, competitive deal.

Many homeowners enjoyed cut-price mortgage repayments while on an initial fixed-rate deal but have since reverted to the lender’s much higher standard variable rate (SVR) once the initial introductory offer expired. Remortgaging – effectively replacing the existing mortgage with a new alternative – offers a way …

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Can I remortgage a paid-off property?

You might be in the fortunate position of having paid off your mortgage – whether the mortgage on your main residence or a buy to let mortgage. Although you are glad that there are no monthly mortgage repayments to make, you rue the fact that there is so much capital locked up in your 100% equity of the property.

You have probably heard of property owners who have gained an improved mortgage deal or unlocked a percentage of their equity and raised additional cash through remortgaging. You ask yourself, therefore, whether you can remortgage a paid-off property.

Mortgage or remortgage?

Credit reference agency Equifax explains that you remortgage a property you own when you pay off any existing mortgage with a new one – effectively, a remortgage is a replacement mortgage.

If you have already paid off any mortgage on the property or if you bought it outright without the need for a mortgage, the property is said to be “unencumbered” (by a mortgag…

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