Remortgaging when your house value has increased

Remortgage key figures at a glance

How does a higher house value help when you remortgage?

A higher house value gives you more equity, and more equity lowers your LTV. Equity is the part of your home you own outright. It is the market value minus what you still owe on your mortgage.

An example of equity and LTV

Here is an example.

Say you bought a home for £600,000 with a £480,000 mortgage and a deposit of £120,000. Your starting equity was £120,000, and your LTV was 80% (£480,000 ÷ £600,000 × 100).

A few years later, you owe £450,000 and the home is worth £700,000. Your equity is now £250,000 (£700,000 minus £450,000). Your LTV has fallen to 64% (£450,000 ÷ £700,000 × 100).

You can work out your LTV the same way, by dividing your mortgage by your home’s value, then multiplying by 100.

When a higher value helps and when it does not

Lenders use loan to value to judge risk. The less you borrow against your home’s value, the safer the loan looks to them. Lenders group their deals into LTV bands, and rates change from band to band.

A higher value only helps if it carries you across a band line, and each lender draws its own.

Say one lender prices a lower band below 75% LTV. If your LTV falls from 77% to 73%, you cross that line and more deals open up. If it falls from 73% to 71%, you stay in the same band and little changes. A lower rate can also come with a higher fee, which is why the total cost over the deal period is the figure to compare.

How much have house prices risen?

Prices have not risen everywhere, so check your own figures before you plan around a higher value. The UK House Price Index shows the average UK home cost £273,000 in July 2026, which is 1.4% more than a year earlier.

In the 12 months to July 2026, London prices fell 3.3% while the North East rose 4.9%, the same index shows.

So base your plans on what similar homes on your street have sold for lately. If prices near you have fallen, your LTV may be higher than you think.

Do lenders value your home when you remortgage?

Yes. A new lender usually values your home when you apply, so your LTV percentage rests on the lender’s figure, not yours. The valuation may be only a look at the outside of the property.

If the valuation looks too low, ask the lender to look again. Send evidence, such as recent sale prices of similar homes nearby and records of any improvements you have made.

A product transfer with your current lender often needs no new valuation. In that case, a higher home value will not change the deals you can choose from.

Remortgaging a house to release equity

Remortgaging a house to release equity means borrowing more than you owe now and taking the difference as cash. People use it to fund home improvements, clear debts or help buy another property.

Take the same example.

You owe £450,000 on a £700,000 home and borrow £50,000 more. Your new mortgage is £500,000, and your LTV is 71% (£500,000 ÷ £700,000 × 100). You can see the limits and rules in our guide to capital raising remortgages.

Using your mortgage to consolidate debts can cut your monthly outgoings. But you spread the debt over a longer term, so you may pay more interest overall. Debts that were unsecured also become secured on your home.

You can sometimes release equity without remortgaging, for example through extra borrowing from your current lender, and a broker can compare the routes.

Will the lender check what you can afford?

Usually yes, but the checks can be lighter if you borrow no more than you owe.

FCA rules in MCOB 11.9 let lenders ease their affordability assessment in that case. The new mortgage must be on the same property, and you must have had no missed payments in the last 12 months.

Lenders choose whether to use this rule, so some still run full checks. If you borrow more, expect a full assessment. The lender will ask for proof of income and may ask to see your bank statements. Our guide explains mortgage affordability in more detail.

Your own lender may offer an easier route. The government’s Mortgage Charter, published in March 2026, covers customers who are up to date with payments. It includes a switch to a new deal at the end of a fixed rate without another affordability check. Ask your lender what it offers.

How much can you borrow?

Your income and the lender’s LTV limit decide how much you can borrow. Limits differ by lender.

At the time of writing in October 2026, Nationwide offered remortgages up to 95% LTV if you borrow no more and have no other secured debts. For other cases, its limit was 90%.

Use our how much can I borrow calculator for a rough idea. A broker can then check which lenders suit your income and LTV.

What does it cost to remortgage?

If you leave a fixed or tracker deal early, your current lender may charge an early repayment charge. Your mortgage paperwork sets out the amount. For example, a charge of 1% on a £450,000 balance would cost £4,500.

There can be other costs too. You may pay an arrangement or product fee. If your lender lets you add it to the loan, you then pay interest on it. You may also pay legal and valuation fees. Some deals come with free legal work or cashback. Check what yours includes.

Add up every cost before you switch. Compare the total with the saving you expect from the new deal.

When is the best time to remortgage?

Start looking up to six months before your current deal ends. According to the Mortgage Charter, six months is the longest lenders may offer for locking in a new deal. Your own lender may set a shorter window.

A remortgage usually takes 4 to 8 weeks from application, according to Halifax. It suggests allowing about 12 weeks in total near the end of a fixed rate. That gives you time to compare deals and avoid slipping onto your lender’s standard variable rate, which can be higher than the rate on a new deal.

You might want to move before your deal ends. That can work if the saving beats the exit charge. Our guide covers remortgaging early. A mortgage broker can run the figures and compare the full cost.

Remortgage or product transfer: which suits you?

A product transfer moves you to a new deal with your current lender. The loan, the property and the names on the mortgage stay the same. It can be quicker and cheaper than a standard remortgage.

If your lender offers a competitive deal and you need nothing else, a product transfer can be a sound choice. But a product transfer changes your rate and little else. Borrowing more or consolidating debts usually means a standard remortgage or extra borrowing from your lender.

To add or remove someone, you need a transfer of equity instead. A common reason is a divorce or separation, when one partner takes over the property.

How an independent mortgage broker can help

A broker starts with the lender’s likely valuation. A valuation that comes in lower than you expected can push you into a higher LTV band, so it helps to know the likely range before you pay for anything.

The broker then tests your income against each lender’s rules and compares deals across the whole market. They can also work out the cost of leaving your current deal early. If you want to borrow extra, they can tell you which lenders suit your plans.

Respect Mortgages can introduce you to an independent, whole of market mortgage broker. To speak to a remortgage expert, call 0330 030 5050 or use our form.