Remortgage Affordability — Can You Borrow More When You Remortgage?

Can You Borrow More When You Remortgage?

Yes — but not automatically. When you remortgage to a new deal or a new lender and wish to increase your borrowing, you undergo a fresh affordability assessment. Your track record of paying your existing mortgage is noted, but lenders re-examine your income, outgoings, and the property's current value as if assessing a new application.

Use our [mortgage affordability calculator](/mortgage-calculator) to estimate whether additional borrowing is likely to be affordable before approaching your lender or a broker.

Two Routes to Borrowing More

**Route 1: Further advance with your existing lender**

You can ask your current lender for a further advance — an additional loan on top of your existing mortgage, often at a different rate and on different terms. This is faster (no full application to a new lender) and may involve a lighter-touch affordability check. However, the rates on further advances are not always competitive.

**Route 2: Remortgage to a new lender for a larger amount**

Switching to a new lender while simultaneously increasing the loan is a full remortgage application. The new lender assesses the combined new loan against your current income and outgoings. You benefit from access to the whole market's product range, but the process takes longer.

How Affordability Is Assessed on Remortgage

The same framework applies as for a new purchase:

**Income verification:** Payslips, P60s (employed) or SA302s (self-employed). Lenders verify current income, not just that you were earning when the original mortgage was taken out.

**Expenditure review:** Your committed outgoings are assessed. If your circumstances have changed — new childcare costs, additional loans, a partner no longer working — these will reduce the amount available.

**LTV calculation:** The new, larger loan is expressed as a percentage of the property's current value (determined by a lender's valuation). Rising property values improve your LTV position; falling values make it harder to release equity without breaching LTV thresholds.

**Stress test:** The same internal stress-test rates apply as for new purchases (typically 7–8.5% in 2026).

Using Equity for Home Improvements

One of the most common reasons to borrow more on remortgage is funding home improvements. Kitchen extensions, loft conversions, and new heating systems are all typical uses.

Lenders generally view home improvement borrowing favourably because it may increase the property's value (and therefore improve their LTV security). Most lenders ask what the funds are for and may require evidence (quotes or invoices) for larger borrowing increases.

From an affordability perspective, the additional borrowing is assessed in full — the entire new, larger mortgage must pass the affordability test at the stress rate.

Maximum LTV When Remortgaging to Release Equity

Most lenders cap remortgage LTV at 85–90% of the property's current value for residential borrowers, though 80% is more common for equity release purposes. This means your ability to release equity depends on how much the property has increased in value since your original purchase.

**Example:**

• Original purchase: £250,000 (2020), £200,000 mortgage (80% LTV)
• Current value: £310,000
• Outstanding mortgage: £175,000 (after five years of capital repayments)
• Current LTV: £175,000 ÷ £310,000 = 56.5%

This borrower has substantial equity. To release £40,000 (for a loft conversion):

• New loan: £215,000
• New LTV: £215,000 ÷ £310,000 = 69.4% — well within most lenders' thresholds

However, they must also pass the affordability test on the new higher loan.

When Additional Borrowing May Not Be Available

Your request to borrow more may be declined or reduced if:

• **Your income has fallen** since the original mortgage — many lenders apply a "not worse than original" principle, but if income has dropped materially, the new assessment may produce a lower maximum
• **Your outgoings have increased** — new loans, childcare, or a partner leaving employment all reduce disposable income available for mortgage payments
• **The property value has not risen** — in a flat or falling market, the LTV may not leave headroom for additional borrowing
• **You are in a fixed-rate period with early repayment charges** — it may still be possible to take a further advance with the existing lender without triggering the ERC, but switching lender would incur it

Alternatives to Remortgaging for Additional Funds

If remortgage affordability does not support the additional borrowing you need, alternatives include:

• **Secured loan / second charge mortgage** — a second mortgage secured against the property, from a different lender. Your first mortgage remains unchanged. Rates are typically higher than first-charge mortgages.
• **Personal loan** — unsecured, at higher rates, but useful for smaller sums where the remortgage process is disproportionate
• **Waiting until ERC period expires** — if you are in a fixed rate with charges, waiting until the deal ends avoids exit costs

Use our [mortgage affordability calculator](/mortgage-calculator) to compare your current monthly payments against projected payments on the larger loan and assess whether additional borrowing makes financial sense given current rates.