Can’t remortgage due to affordability? Here's what to do

Remortgaging your home can be a helpful way to manage your finances.

For some homeowners it’s an opportunity to lower their monthly repayments, for others it’s a way of releasing equity that you might need, perhaps to pay for home  renovations.

But affordability tests can sometimes be a stumbling block, particularly if your finances have changed since you bought the property.

That means if you’re struggling to remortgage or are worried about affordability, you’re not alone. 

After years of rock-bottom interest rates, borrowing costs have risen substantially in recent years, putting a huge financial strain on household budgets.

This article will take you through key reasons why you may struggle to remortgage and what to do next.

Why can’t I remortgage my property? 

There are many reasons why you may not be able to afford to remortgage, including: 

Rising rates mean you fail the affordability test 

Interest rates shot up in the aftermath of the Covid-19 pandemic and are still typically over 5%. And experts warn that rates may increase further if UK inflation stays above the Bank of England target rate.

This has a knock-on impact on mortgage holders, with the average rate standing at 5.93% in October 2026, according to Moneyfacts.

That means borrowers coming off cheap five year fixed rates this year can expect their bill to rise substantially when they remortgage.

For some borrowers, this could mean failing the affordability test when they come to remortgage - lenders stress-test your expected mortgage payments against your income and expenses.

Rising rates and sky-high house prices mean homeowners are facing a double whammy. And many borrowers are now stuck on high standard variable rates, because they can’t find a suitable deal. 

Fortunately, having your application rejected isn’t the end of the road. A specialist advisor can help you find the best options and hunt down a deal that reduces your monthly costs.

You’ve missed mortgage payments or are in arrears 

You may struggle to remortgage if you’ve missed any mortgage payments in the previous 12 months or you are in arrears. 

This may make it harder to either get a new mortgage or one with a competitive rate, as you’ll be regarded as higher risk by lenders.

The value of your home has fallen 

If the value of your home has decreased, you may have to apply for a mortgage with a higher loan to value (LTV), which is the outstanding amount on your mortgage compared to your property’s value. 

This can be an issue as it reduces your chance of successfully remortgaging, especially as a higher LTV means you’ll face a higher mortgage rate.  

If the value of your home is less than the value of your mortgage, known as negative equity, you’ll find it very difficult to remortgage.

You have a bad credit rating 

If you have a low credit score, you may be rejected for a remortgage or have limited options. 

It’s always a good idea to check your credit score before applying for a new mortgage, as it gives you the opportunity to correct any errors or clear any existing debt to boost your score. 

You should also consider doing a soft credit check for any financial products you apply for, as this won’t hurt your credit rating. 

As you can remortgage up to six months before your fixed-rate deal ends, it’s worth avoiding applying for any credit at this time as it could impact your credit score.  

Your income has fallen, or your circumstances have changed 

You may find it difficult to remortgage if you’ve had a drop in income, recently changed jobs, become self-employed, or are facing redundancy. 

Other circumstances can also have an impact. For example, if you start a family or go on maternity or paternity leave, this can affect your remortgage application.  

While this can be daunting, a mortgage broker can help you find the right deal for you. 

You’re spending too much 

As some lenders look at your debt-to-income ratio, if your outgoings are too high, you may fail affordability checks and have trouble remortgaging. 

The lender may be concerned that you don’t have enough money after paying your utility bills. While there’s no set debt-to-income ratio you need to pass to get a remortgage, it’s worth being aware of. 

A mortgage broker can find the best mortgage for you by looking at your income and spending. 

What to do if you can’t remortgage due to affordability 

It can be unsettling to have a remortgage application rejected, especially as this could leave you at the mercy of eye-wateringly high standard variable rates (SVRs).  

Here are some things you can do if your remortgage application has fallen through:

Talk to a mortgage broker for expert advice 

First, we would recommend talking to a mortgage broker, as they also have access to a wide range of lenders across the market, including smaller lenders not available directly They also know which lenders are likely to be more flexible, given your circumstances.

So, for example, if you are self-employed or were rejected based on your debt-to-income ratio, they may be able to help by looking at specialist lenders. 

Brokers can also pre-vet your application so there is less chance you are rejected. This is important because a full application leaves a mark on your credit file and multiple hard searches in a short space of time could damage your credit rating.

Don’t panic apply  

You should avoid making any further mortgage applications until you talk to a broker, as some applications involve a hard credit check, which can impact your credit score.  

Extend your mortgage term 

Alternatively, extending your mortgage term when remortgaging could cut your monthly payments, although you’ll end up paying more interest overall. Bear in mind that some lenders have an age limit and will cap your term at 70 or 75-years old, or when you plan to retire.

If your circumstances change, when you remortgage, you can choose a shorter mortgage term.

Stay loyal to your existing lender 

Instead of going through an affordability check with a new lender, you could stay with your current one and avoid this altogether, which is useful if your circumstances have changed. 

This doesn’t necessarily mean you have to pay the SVR, you might be able to switch to a new deal with them such as a fixed rate or tracker. Going down this route you might also find there’s fewer fees to pay and a lot less paperwork. 

The catch is that you may miss out on the most competitive deals on the market.

Switch to an interest-only mortgage 

Interest-only mortgages are no longer common and have strict affordability rules. Lenders will need to see you have a plan to repay the mortgage at the end of the term eg. through downsizing or selling other investments. 

Similar to extending your mortgage term, this shouldn’t be a permanent solution as you’ll have to pay the outstanding mortgage balance when the overall term ends.  

As an alternative, mortgage lenders now offer a 6-month interest only period, which can give you some breathing space if you’re struggling with repayments.

Another option is a part and part mortgage which is a combination of an interest-only and repayment mortgage - you pay a set amount of your mortgage back, instead of the whole amount.  You would still need a way to clear the remaining balance when the term ends.  

Boost your credit score 

One way to potentially access more competitive rates is by having a good credit score, as you’re seen as lower risk compared to applicants with poor credit scores. 

As we mentioned, it’s a good idea to check your credit score regularly, as well as your credit report, so you can identify any errors and fix them as soon as possible. 

There are also lots of simple ways to boost your credit score.  

Consider adding a guarantor 

You can add a guarantor to your mortgage regardless of if it’s a new one or a remortgage.  

While adding a guarantor can increase your affordability, it is a risk for a guarantor as it involves agreeing to pay your mortgage if you can’t, and their property is used as security. 

For this reason it’s important that they get financial advice, first.

Consider paying off a lump sum 

If you’re close to a new LTV threshold that will offer access to lower rates and monthly payments, you could consider using a lump sum to pay off more of your mortgage. 

It’s worth talking to a mortgage broker to see if this is right for your circumstances – after all, there’s no point in paying a lump sum if the lower rates are negligible.  

Seek mortgage advice

It can be stressful remortgaging, but you don’t have to do it alone. 

Unbiased can connect you with a mortgage broker who can find the most competitive mortgage regardless of your circumstances.