Can I Remortgage if I Own the House Outright?

Written by Daniel Tannenbaum on September 10, 2021

Updated April 12, 2022

Yes, you can get an unencumbered remortgage on a house you own outright. The term “unencumbered remortgage” is used for mortgages that are placed on a mortgage-free property.

If you own your house outright and want to remortgage, you’ll usually be able to do this quite simply, as the risk for lenders offering the remortgage is fairly minimal. In fact, it can often be easier for those who already own their property to take out a mortgage on it compared to those wanting to use a mortgage to purchase a property.


Taking Out an Unencumbered Remortgage

Taking out an unencumbered remortgage will usually be quite easy to do and can help homeowners access some fantastic deals.

People take out remortgages on properties they own outright for a variety of different reasons, including the following:

  • To make home improvements
  • To help buy an investment property
  • To move home while keeping the unencumbered property to rent out

While technically you can’t remortgage on an unencumbered property, the procedure for this will work the same. Some lenders will class this form of borrowing as a remortgage, while others will classify it as a new purchase. Either way it is classed, you should still have access to a variety of available options.




What Are the Eligibility Criteria?

Taking out a mortgage on a property you own outright is just the same as any other mortgage, lenders carrying out the standard eligibility assessments around the following key areas:

  • Your income
  • Your employment status
  • Your affordability
  • Your age
  • Any existing debt you have
  • The reason you’re wanting to remortgage

There are a variety of different factors that could impact your eligibility for a mortgage. Lending Expert offer a free eligibility checker to help you get started, available on our remortgage page.


Should I Remortgage a Home I Own Outright?

Taking out a remortgage on a home you own outright can be beneficial for numerous different reasons. However, whether or not an unencumbered remortgage is right for you depends on your circumstances, as well as why you’re taking one out in the first place.

To help you determine whether an unencumbered remortage is right for you, it may help to consider the following factors:

Are you comfortable having this financial commitment? If you currently own your property outright, you won’t have the financial commitment that a mortgage brings. When considering whether to take out a remortgage, it’s important that you understand the responsibility you have in keeping up with payments on the loan, the risks associated, and that you’re comfortable with this arrangement.

Do you have any existing debt? If you already have a substantial amount of debt, is taking out an unencumbered mortgage the best option for you? Could you manage to keep up managing all your debt if taking out a remortgage or could this worsen your financial situation? This will be entirely dependent on your own personal circumstances.

Why do you want to remortgage? The reason for you taking out the remortgage should make sense from a financial perspective. It may help to discuss this decision with a financial advisor to check you’re taking out this loan for the right reasons, and to check whether there may be more appropriate loans for what you want the money for.

To discuss your secured loan, get a free and impartial quote from Lending Expert today >>


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