How Much Can You Borrow When You Remortgage?

How much can you borrow when you remortgage? It depends on three things: your income and outgoings, the value of your home, and how much equity you already hold. Whether you are simply switching your existing balance to a better rate or releasing extra cash, lenders will reassess what they are willing to lend based on affordability and your loan-to-value.

This guide explains the main factors, how capital raising works and what to expect. For the wider picture, start with our pillar guide, remortgaging explained.

Affordability comes first

When you remortgage, lenders reassess whether you can comfortably afford the loan. They look at:

• Income — salary, self-employed profits, and sometimes bonuses, commission or benefits.
• Outgoings — regular commitments such as credit cards, loans, childcare and living costs.
• Credit history — how you have managed borrowing in the past.

Lenders then apply a stress test, checking you could still afford the payments if rates rose. This means the amount you can borrow is not just about your salary; it reflects your whole financial picture.

Income multiples

As a starting point, many lenders will consider lending around four to four-and-a-half times your annual income, though some go higher in certain circumstances. For a joint application, they usually combine both incomes.

For example, a couple with a combined income of £60,000 might be considered for a loan in the region of £240,000 to £270,000, subject to affordability and other checks. These figures are illustrative and correct at the time of writing; your own result depends on your full circumstances.

You can get an early estimate using our affordability calculator, then refine it with an adviser.

Loan-to-value and why it matters

Loan-to-value (LTV) is the size of your mortgage as a percentage of your home's value. If your home is worth £300,000 and your mortgage is £150,000, your LTV is 50%.

LTV matters for two reasons:

• It caps how much you can borrow. Lenders set maximum LTVs, often up to 90% or 95% for remortgages, though the best rates sit at lower LTVs.
• It affects your rate. The more equity you hold, the lower your LTV, and typically the sharper the deals available to you.

Because you have usually built up equity since you bought, remortgaging often puts you in a stronger LTV band than when you first took the loan.

Releasing equity (capital raising)

One of the main reasons people remortgage is to release equity — borrowing more than your current balance and taking the difference as cash. Common uses include:

• Home improvements, such as an extension or renovation.
• Debt consolidation, combining other borrowing into the mortgage. This can lower monthly payments but may cost more overall and secures previously unsecured debt against your home, so take advice.
• Helping family, for example gifting a deposit.
• Major life costs, such as education or a vehicle.

When you raise capital, your loan increases, so your LTV rises and lenders reassess affordability on the larger amount. They may also ask what the money is for, as some purposes are viewed more favourably than others.

What affects how much you can borrow

Several factors move the figure up or down:

• Your income type — employed, self-employed, contractor or retired, each assessed differently.
• Existing debts — the more you owe elsewhere, the less you can typically borrow.
• Dependants and commitments — these reduce disposable income in affordability checks.
• Your age and term — lenders consider whether the loan runs into retirement.
• Credit profile — a stronger history can widen your options.

An example

Imagine your home is worth £350,000 and your current mortgage balance is £180,000. That is roughly 51% LTV. If affordability supports it, you might remortgage and release, say, £30,000 for an extension, taking your loan to £210,000 and your LTV to 60%. You would still be in a competitive LTV band, though the exact rate and whether it is approved depend on your income, outgoings and the lender's criteria. These figures are illustrative only.

How advice helps

Every lender assesses affordability slightly differently, so the amount one will offer can vary from another by a meaningful margin. As a whole-of-market adviser, Wisely knows which lenders take a more flexible view of income types like self-employment, bonuses or contract work, and can match you to the one most likely to lend what you need at a competitive rate. Your named adviser handles the calculations and the application from start to finish.

Income multiples, LTV limits and example figures are correct at the time of writing and can change. Lending is subject to status and affordability. Your home may be repossessed if you do not keep up repayments on your mortgage.

Find out what you could borrow

For a clear picture of how much you could borrow on a remortgage, book a free, no-obligation call with a Wisely adviser on 023 8268 1111. We will run the numbers and explain your options.