House Remortgage Limits: Your Quick Guide for 2025

Did you know most UK lenders cap how much you can borrow on a remortgage at around 75‑85% of your home’s value? That ceiling can make or break your plan to lower payments or free up cash.

Understanding these limits saves you time, money, and surprise rejections. Below you’ll find the basics of what limits are, why they exist, and how to work with them.

How Lenders Set the Limit

Every lender uses a "Loan‑to‑Value" (LTV) ratio. If your house is worth £300,000 and the lender allows an 80% LTV, the most you can borrow is £240,000. The exact percentage depends on your credit score, income stability, and the type of mortgage you already have.

Risk‑averse lenders may stick to 75% for borrowers with shaky credit, while premium banks push 85% for high‑credit customers. Think of the LTV as a safety net – the lower it is, the less risk for the lender.

Factors That Can Raise or Lower Your Limit

1. Credit score: A score above 750 usually unlocks the higher end of the range. Below 600, you might see caps at 65% or less.

2. Income proof: Stable employment or a strong self‑employment track record lets lenders trust you with a bigger loan.

3. Property type: Free‑hold homes often get better limits than lease‑holds, because there’s less uncertainty about ownership.

4. Existing mortgage debt: The more you already owe, the tighter the limit becomes. Lenders add up all debts tied to the property before deciding.

5. Market conditions: In a falling market, banks may lower their caps to protect themselves, while a booming market can push limits up.

Knowing which of these apply to you helps you target the right lender and avoid wasted applications.

When you plan a remortgage, start by checking your credit score and gathering recent payslips or tax returns. A quick online calculator can give you a ball‑park LTV based on your home’s current market value.

If the calculator shows you’re above the typical 80% limit, you have two options: either boost your home’s equity (e.g., by paying down the existing loan) or look for specialist lenders who offer higher LTVs for low‑risk borrowers.

Specialist lenders often charge a higher interest rate, so compare the extra borrowing capacity against the potential cost. In many cases, paying a little extra each month to stay under a mainstream limit ends up cheaper in the long run.

Another trick is to split the remortgage. Some borrowers take a lower‑LTV main mortgage for the bulk of the loan and a smaller second‑mortgage or secured loan for the remaining amount. This can keep the main LTV within the lender’s sweet spot while still freeing up the cash you need.

Remember, every time you apply for a new mortgage, a hard credit check pops up. Too many checks in a short period can knock a few points off your score, which in turn can shrink your borrowing limit. Space out applications and only approach lenders you’re serious about.

Finally, discuss your plans with a mortgage adviser. A good adviser knows which lenders are flexible on LTV and can negotiate better terms based on your full financial picture.

Bottom line: house remortgage limits are mostly about LTV, credit health, and market vibes. Check your numbers, pick the right lender, and you’ll avoid surprises at the finish line.