Rated Excellent. Carl Atkinson 4-minute read Last updated: May 17, Get a bit of mortgage joy It takes a few minutes to find out how much you could save with Mojo.
Get Started. Can you get a mortgage on a house you already own? Let's have a look. I own my property outright, can I remortgage? These are very similar to other remortgage applications you may have made in the past, where the lender looks at: The value of your property The amount you want to borrow Your ability to repay the mortgage debt When looking to remortgage a property you own outright, the lender will also want to know: What you intend to do with the money Some common examples that lenders tend to accept are buying a second house or renovating your current one.
How much can I remortgage a house I own for? You can compare all the remortgage deals available to you with Mojo. It takes a few minutes and if you need it, you can get free expert advice. Is this type of remortgage different to equity release? How do I remortgage a property I owe outright?
In the same way you'd remortgage any property. You can go get in touch with your old lender, but there is no real advantage to this. Once you have found the deal that best suits your requirements we can help you apply — for free.
See your remortgage options then apply It takes a few minutes to find out exactly how much you could save with Mojo helping you remortgage. Measure content performance. Develop and improve products. List of Partners vendors. If you feel like you're ready to buy a house, the first question you're likely to ask yourself is "how much can I afford? Before you snap up that seemingly great buy on a home, learn how to analyze what "affordability" means. You'll need to consider various factors ranging from the debt-to-income DTI ratio to mortgage rates.
The first and most obvious decision point involves money. If you have sufficient means to purchase a house for cash, then you certainly can afford to buy one now. But how much mortgage can you afford? This ratio is used to determine if the borrower can make their payments each month. Some lenders may be more lenient or more rigid, depending on the real estate market and general economic conditions. Of course, less debt is always better. Mortgage lending discrimination is illegal.
If you think you've been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps you can take.
Why wouldn't you be able to use your full debt-to-income ratio if you don't have other debt? Basically, because lenders don't like you living on the edge. Financial misfortunes happen—you lose your job, your car gets totaled, a medical disability prevents you from working for a while. Most mortgages are long-term commitments. Keep in mind that you may be making those payments every month for the next 30 years. Accordingly, you should evaluate the reliability of your primary source of income.
You should also consider your prospects for the future and the likelihood that your expenses will rise over time. Perhaps you aren't planning on living in the home very long or have long-term plans to convert the home into an investment property. Similarly, you might not want to put that much cash down. You can buy a home with as little as 3. Being able to afford a new house today is not nearly as important as your ability to afford it over the long haul.
Needless to say, being able to afford a house and having a down payment doesn't answer the question of whether now is a good time for you to act on that option. While there are many benefits to a larger down payment, don't sacrifice your emergency savings account completely to put more down on your home.
You could end up in a pinch when unexpected repairs or other needs arise. Assuming you have your personal money situation under control, your next consideration is housing-market economics—either in your current locale or the one where you plan to move. A house is an expensive investment. One way to do this is to answer the question— is it cheaper to rent than to buy?
If buying works out to be less expensive than renting, that's a strong argument in favor of purchasing. For generations, buying a home was almost a guaranteed way to make money. While real estate has traditionally been considered a safe long-term investment, recessions and other disasters can test that theory—and make would-be homeowners think twice.
During the Great Recession many homeowners lost money when the real estate market crashed back in , and ended up owning homes that were worth far less than the price at which they were purchased for many years after.
If you are buying the property on the belief that it will rise in value over time, be sure to factor the cost of interest payments on your mortgage, upgrades to the property, and ongoing or routine maintenance into your calculations. Along those same lines, there are years when real estate prices are depressed and years when they are abnormally high.
If prices are so low that it is obvious you are getting a good deal, you can take that as a sign that it might be a good time to make your purchase. It's too soon to tell what will happen to home prices in But if history repeats itself, we can expect a drop in home prices as a result of the COVID pandemic and its dramatic impact on the economy. Interest rates , which play a large role in determining the size of a monthly mortgage payment, also have years when they are high and years when they are low.
Obviously, lower is better. So if interest rates are falling, it may be wise to wait before you buy. If they are rising, it makes sense to make your purchase sooner rather than later. The seasons of the year can also factor into the decision-making process. If you want the widest possible variety of homes to choose from, spring is probably the best time to shop. Part of the reason relates to the target audience of most homes: families who are waiting to move until their kids finish the current school year but want to get settled before the new year starts in the fall.
MENU Toggle navigation. I own my house outright can I remortgage. How does this work when you own the house outright? How does the remortgage work? Other reasons for a remortgage include: — buying a property for a family member — going on a holiday — buying land — paying for a wedding or a special event — helping out a family member or — paying for university fees How much can you borrow?
What do you need in order to remortgage your property? Think carefully before securing debt against your home, your home may be repossessed if you do not keep up repayments on your mortgage. Contact Mortgage Wise The FCA do not regulate buy to let mortgages. Request a callback Please fill out the form below and will be in touch with you shortly. First Name:. Last Name:. Phone Number:.
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