Remortgaging when your house value has changed

Our guide to remortgaging when your house value has increased or decreased.

Remortgaging and house values

Achieving financial freedom requires wise decisions about managing your finances. One big step towards this is owning your home outright, and remortgaging can be a smart move to help achieve this. However, if the value of your home has significantly increased or decreased, it's important to weigh up the pros and cons before switching to a new deal. 

To help you make an informed choice, this guide provides all the essential information you need to know about remortgaging when your home’s value has changed - for better or for worse.

Man sat at a desk with paperwork and a calculator

Remortgaging your home when the value has increased

If you're lucky enough to see a surge in your home's value, you may find your remortgage options drastically improve. That said, this is only possible if you have a good credit rating and no arrears.

By remortgaging when your property's value has increased, you could qualify for better remortgage deals such as lower interest rates, or even borrow more in equity. This means homeowners can take advantage of the rise in property value to potentially secure a better mortgage deal.

What makes remortgaging a smart move in this situation is the fact the loan-to-value (LTV) goes down. The LTV is the ratio of your outstanding mortgage balance to the value of your home. When your LTV decreases, you're more likely to be offered a better interest rate.

Additionally, if you need to access more funds, you may be able to do so by remortgaging. This could be incredibly helpful if you're looking to finance home renovations, consolidate debt, or cover other expenses.

Remortgaging when your house value has decreased

Remortgaging when in negative equity

Remortgaging FAQs

Should you get your house revalued before remortgaging?

When remortgaging, one question that often comes up is whether your house will undergo a remortgage valuation process. Depending on the lender, a home valuation for remortgage may or may not be required to assess the current market value of your property before approving any changes to existing mortgages. 

The current state of the market also plays a role in whether or not your home will be revalued. For example, when house prices increase or decrease significantly over a short period, lenders may opt for a new valuation before making an offer. 

When applying for a new mortgage, it’s essential to be realistic about the remortgage value of your property. Overvaluing your home could result in being offered a higher interest rate or being unable to borrow the amount you need.

Should you remortgage if your house value has increased or decreased?

How can I get the best remortgage deal?

Next Steps

Whether you're hoping for a better interest rate, a longer fixed term, or an equity release, remortgaging can be the answer. Generally, we’d advise remortgaging whenever your deal period ends, otherwise, you’ll be faced with a much higher rate. More information on remortgaging can be found in our remortgaging guide. 

If you’re ready to remortgage now, existing customers can switch to another Furness mortgage online. Whereas new customers can browse our latest rates using our mortgage finder.