Can’t Afford to Remortgage? What You Need to Do

If your fixed or tracker mortgage deal is coming to an end and your new options are either unaffordable or simply unavailable – it can feel like the walls are closing in.

Maybe your income’s dipped.

Maybe your credit score’s taken a knock.

Or maybe the interest rates have left you staring down the barrel of £200, £300 or even £500+ a month more than you’re used to paying.

Whatever the reason, the reality is this:

Millions of UK homeowners have faced this challenge. In 2025, around 1.6 million fixed-rate mortgages expired – and many borrowers discovered they “failed” affordability checks with lenders, even if they’d never missed a payment.

But here’s the good news:

There are still options available. Some of them can help you avoid slipping onto an expensive SVR (Standard Variable Rate). Others can protect your credit score or buy you time to regroup financially. And if all else fails, a fast sale may help you avoid repossession altogether.

In this guide, we’ll walk you through:

• Why lenders might say no to your remortgage – even if you’re a responsible borrower
• What immediate steps you need to take to avoid being caught out
• Alternative solutions that could buy you time or reduce your payments
• What to do if you’re already stuck on a high SVR
• And finally – how to sell fast (and stress-free) if you need to exit the mortgage completely

Let’s get into it.

Why You Might Not Be Able to Remortgage

Stricter Affordability Rules

One of the biggest roadblocks in recent years is the way lenders now assess affordability.

While lenders must still assess affordability under FCA rules, the Bank of England removed its mandatory 3% stress test back in 2022. However, some lenders still choose to apply their own stress test margins, which can sometimes make passing affordability checks difficult even if you are applying for a lower fixed rate.

Add in rising utility bills, food costs, childcare and fuel, and suddenly your monthly “spare income” looks much slimmer than it did a couple of years ago.

If you’re self-employed or have variable income, you’ll likely be scrutinised even harder. And if your mortgage was cheap before, the jump in monthly payments can look too big – even if you think you can manage it.

For more on how affordability is calculated, check the Financial Conduct Authority’s guidance on mortgage affordability.

Drop in Your Income

Lost a job? Switched to part-time? Started a family? Lenders don’t care about your intentions – they care about your paperwork.

If your payslips or accounts show a drop in income since your last mortgage deal, your affordability profile takes a hit. Even if you’re confident you can manage the new payments, many lenders won’t agree.

Worse still, if you’ve gone self-employed recently, you might need at least one to two years of accounts before some lenders will even look at your case.

Poor or Damaged Credit Score

Even a couple of late payments can harm your chances of remortgaging.

If you’ve had missed payments, defaults or County Court Judgements (CCJs) in the last few years – particularly if they’re mortgage-related – you’ll be seen as high-risk.

Mainstream lenders may reject your application outright or only offer you higher-than-average rates. And if you’ve fallen into mortgage arrears, you’ll find your options especially limited.

But you’re not alone – around 90,000 UK households were in mortgage arrears in early 2025. It’s a tough market. But it’s one lenders are actively working to support.

Negative Equity

If your home is worth less than your remaining mortgage balance, you’re in negative equity – and that makes remortgaging extremely difficult.

Why? Because most lenders won’t lend more than 90–95% of your home’s value. If you’re already at 100% LTV (loan-to-value), you’ll be shut out of most deals.

This is especially common for those who bought with small deposits or took out high-LTV mortgages during the peak of house prices. Recent estimates suggest hundreds of thousands of homes could be affected by negative equity in the current market.

Unusual Property Types or Titles

Even if your finances are sound, your property itself could be the issue.

Homes with non-standard construction (e.g. concrete or timber frames), short leases, or title defects may not meet the lending criteria for certain banks.

Flats with cladding concerns, spray foam insulation, or complex ownership arrangements can also be flagged during valuation – potentially torpedoing your remortgage application altogether.

Recent Changes to Affordability Rules

Here’s something that might help if you’re struggling: in July 2025, the Financial Conduct Authority simplified some mortgage rules to make things easier for borrowers.

For instance, lenders now have more flexibility when assessing affordability for term reductions or certain switches, without always needing a full re-check. And the Bank of England has recommended loosening caps on higher-risk lending, which might open doors for first-time buyers or those with smaller deposits.

It’s not a free pass, but if your situation’s borderline, these tweaks could make a bit of a difference.

Immediate Steps to Take If You Can’t Remortgage

If you’ve been rejected for a remortgage or know you’re likely to be, don’t panic. There are things you can do right now to protect your home, your credit score, and your peace of mind.

Don’t Ignore the Problem

First off – don’t bury your head in the sand.

It might be tempting to delay action, but the longer you wait, the worse the fallout.

If you miss even one mortgage payment, it gets recorded on your credit file. That makes getting a new deal even harder. Multiple missed payments or falling into arrears? That could lead to serious consequences – including repossession.

Instead, contact your lender as early as possible.

If you’re facing any of these circumstances, tell your lender. Under the Mortgage Charter, which continues to support borrowers, lenders are required to offer tailored help to those struggling with repayments.

That could include:

• Switching to interest-only payments for up to six months
• Extending the term to reduce monthly costs
• Arranging a new product transfer without full affordability assessment

Note: Payment holidays (payment deferrals) are a general forbearance measure that will negatively impact your credit score and are not part of the Mortgage Charter’s protected options.

The sooner you get in touch, the more options you’re likely to have – and reaching out won’t hurt your credit score.

Check Your Mortgage End Date and SVR

Find out exactly when your current deal ends – and when your lender plans to shift you onto their Standard Variable Rate (SVR).

Why does this matter?

Because SVRs in 2025 and early 2026 have been brutal – averaging around 7% or higher in many cases, despite the Bank of England’s base rate falling to 3.75% by early 2026.

That can add hundreds to your monthly payments. So the aim is to find any viable alternative before that date arrives.

Review Your Finances in Detail

Now’s the time to strip things back to basics.

Go through your monthly budget with a fine-tooth comb and see:

• Where you can cut back
• What non-essential spending can be paused
• Whether you can improve your credit score quickly (e.g. by paying off small debts)

Also start gathering your income evidence now – payslips, bank statements, self-employed accounts – because any lender or broker you speak to will want to see the full picture.

Even if you can’t remortgage immediately, improving your affordability and credit over the next 6–12 months could open up new options later.

Speak to a Specialist Mortgage Broker

Here’s a key move most struggling homeowners overlook:

Talk to a broker who deals with complex cases.

These aren’t your average high-street mortgage advisers. Specialist brokers work with lenders who are comfortable with things like:

• Adverse credit
• Irregular or self-employed income
• Higher LTVs
• Unique property types

They may also have access to product transfers or manual underwriting options that aren’t visible on comparison sites or directly available to the public.

This could make the difference between being stuck on a 7% SVR… or locking in a 5.5% fixed deal with your current lender.

Yes – you’ll likely pay a higher interest rate than someone with a clean file and perfect income. But it could still be much cheaper than your SVR.

Alternative Mortgage Solutions

If a high-street remortgage isn’t available right now, don’t assume that’s the end of the road.

Here are a few alternatives that may help you stay in control.

Product Transfer with Your Current Lender

This is often the easiest first step – and many people overlook it.

A product transfer means switching to a new rate with your current lender, rather than remortgaging to a new provider.

Why it helps:

• No need for a full affordability assessment in many cases
• No legal work
• No valuation needed
• Usually quicker to arrange than a full remortgage

If your lender is part of the Mortgage Charter, they may even offer you a new fixed or tracker rate without requiring you to “requalify” – even if your circumstances have changed.

Basically, it’s a lot easier to get remortgaged with your current lender vs a new lender because a new lender will scrutinise your application while your existing lender will generally be happy as long as you’ve been good with payments to date.

If your current lender isn’t interested in offering you a product transfer, then there’s likely something very problematic with your credit, that will likely affect any new applications with other lenders.

Specialist or Adverse Credit Lenders

If your credit score has taken a knock, there are still lenders out there – just not the ones you’ll find on TV adverts.

Specialist lenders are more flexible, but they typically charge higher interest rates. The upside is they’ll look at the whole picture – not just your credit score.

For many homeowners, this can be a temporary bridge until their finances improve or credit is repaired.

Extending Your Mortgage Term

This one’s simple but effective.

By stretching your mortgage term – say, from 20 years to 30 – your monthly payments drop, because the debt is spread over more time.

It won’t reduce the total interest you pay (in fact, it increases it). But if you’re struggling month-to-month, it can offer breathing room.

Just be sure to revisit your term later on and shorten it again if your situation improves.

Adding a Guarantor or Joint Applicant

In some cases, you may be able to remortgage by adding a second person to your application.

That could be:

• A partner
• A parent
• An adult child
• Another family member

If their income and credit are strong, it could help you pass affordability checks.

But tread carefully – a guarantor or joint borrower is legally responsible for the mortgage. So make sure everyone involved understands the risks and obligations.

Equity Release

If you’re aged 55 or over and own your home (or have substantial equity), equity release might be worth considering.

What is equity release?

Equity release allows you to access some of the value tied up in your property without having to sell or move. The two main types are:

1. Lifetime mortgage – you borrow against your home’s value, and the loan (plus rolled-up interest) is repaid when you die or move into long-term care
2. Home reversion – you sell part or all of your home to a provider in exchange for a lump sum or regular payments, while retaining the right to live there rent-free

Who is it suitable for?

Equity release can help if:

• You’re retired or approaching retirement with limited income but significant property wealth
• You need to clear an existing mortgage or consolidate debts
• You want to supplement your pension or fund home improvements

Are there alternatives?

Before committing to equity release, consider:

• Downsizing to a smaller, cheaper property
• A later-life or Retirement Interest-Only (RIO) mortgage
• Borrowing from family (if feasible)
• Drawing down from your pension

Borrowing Against an Unmortgaged Property

If you own your home outright – or have a very small mortgage remaining – you might wonder whether you can still raise funds by remortgaging.

The short answer: yes, you can.

Even if there’s no existing mortgage, you can apply for a new one (sometimes called “raising capital” or “releasing equity”). Lenders will assess your application just as they would any other mortgage – which means:

• Affordability checks still apply
• Your income, credit history, and property value will be reviewed
• You may need to explain what the funds are for

Some homeowners use this route to:

• Consolidate other debts
• Fund home improvements
• Help children onto the property ladder
• Cover unexpected expenses

But remember: you’re taking on debt secured against your home. If you can’t make the repayments, you risk losing the property.

If you’re considering this, speak to a mortgage broker who can help you find the right deal for your circumstances.

If You’ve Already Moved to Your Lender’s SVR

Let’s say your fixed or tracker deal has already ended – and now you’re stuck on your lender’s SVR.

You’re not alone. In fact, thousands of UK homeowners are in this position right now. But the good news is: it doesn’t have to be permanent.

Here’s what to do:

Understand the Cost Impact

First, get clear on how much this is actually costing you.

In 2025 and early 2026, SVRs hovered around 7% or more in many cases – sometimes even higher. Compare that to your old rate, probably 2–3%, and the difference can be jaw-dropping.

On a £200,000 mortgage, every 1% rise in interest can mean an extra £130+ per month in repayments.

If your payments have jumped by £300–£500, it’s worth doing the maths to see whether switching to any fixed deal – even one slightly above base rate – could bring that down.

Following the Bank of England’s base rate cut to 4% in August 2025, some SVRs have eased slightly. But they’re still significantly higher than available fixed-rate products.

Consider Temporary Overpayments (If You Can Afford It)

Not everyone can do this – but if you’ve got a bit of spare cash each month, even small overpayments can help.

Why?

Because they reduce your mortgage balance. And a lower balance improves your Loan-to-Value (LTV) – which is one of the biggest factors lenders consider when offering a new deal.

Get your LTV down below 90%, 80%, or 75% – and better remortgage deals often become available.

Tip: Check with your lender to see how much you can overpay without penalty. Most allow 10% per year as standard. If your lender has an online portal you might be able to log in and see this info there in your online account.

Keep Monitoring the Market

Interest rates are volatile.

In fact, 2025 saw a slight easing in average fixed rates as the Bank of England reduced the base rate down to 3.75% by December. Many experts predict rates will continue to ease throughout 2026.

That means new mortgage deals are still appearing – and better options could emerge.

You don’t need to check every lender manually. Instead:

• Use a mortgage broker who’ll alert you to better deals
• Set up rate alerts with comparison sites
• Contact your lender directly and ask what they can offer

Don’t assume you’re stuck – keep your options open and your documents up to date. A better deal could be around the corner.

What If Remortgaging Isn’t Viable at All?

Let’s say you’ve explored every avenue above, and it’s still not doable.

You’re stuck on SVR, repayments are higher than before, and affordability checks are blocking every remortgage path.

So what then?

Time to explore your exit options. Because it’s better to make a controlled decision than to slide towards repossession.

Downsizing or Selling on the Open Market

One of the most common ways to escape an unaffordable mortgage is to sell your home – and either:

• Buy something cheaper
• Rent for a while
• Clear your debts

Selling on the open market can free up equity (if you have it) and help you reset financially. But here’s the problem:

Estate agent sales can take months.

And if you’re under time pressure – say, you’re already in arrears or your SVR is eating up your income – that timeline might not be realistic.

Even self-proclaimed “fast” estate sales can be held up by:

• Chains
• Survey issues
• Buyer dropouts
• Solicitor delays

So while this option works for some, it’s not ideal if you need to move quickly.

Renting Out the Property (Consent to Let)

If selling isn’t feasible yet, another option is to rent out your home temporarily.

This is known as getting “consent to let” from your lender.

It allows you to move out and rent the place to tenants – potentially covering your mortgage while you downsize, rent elsewhere, or regroup.

But be careful:

• You need your lender’s written permission
• You may need to switch to a buy-to-let mortgage, which can come with higher rates
• You become a landlord – so you’re responsible for tenants, safety certificates, insurance and legal compliance (even if you use a fully managed letting agent service, you remain ultimately responsible)
• You will need to pay tax on your rental income. Since 2017, mortgage interest can’t be deducted as an expense – instead you receive a 20% tax credit on the interest paid

This isn’t a magic fix, but in some cases, it can be a lifeline that keeps you afloat.

Using a Fast Home Sale Service

If you need certainty – and speed – a quick sale company like Property Rescue might be your best bet.

Here’s how it works:

1. You fill out a short form or call us
2. We make you a guaranteed cash offer
3. If you accept, we manage the legal process and complete the sale in 2-4 weeks (you choose the timelines)

No agents. No fees. No viewings. No chain.

It’s especially useful if:

• You’re facing repossession
• You’ve already fallen behind on payments
• You’ve got negative equity
• Your home needs work and wouldn’t sell well on the open market

Yes, you’ll likely sell below full market value – but for many homeowners, the speed and security are worth it. Every day your home sits on the open market, is another day for which you need to pay your mortgage. Getting rid of your home quickly gets rid of the mortgage faster.

You walk away with a cash sum. The stress is gone. And your credit score stays intact.

Worth emphasising:

When you sell to us, you sell directly to us. In other words; we are the buyer and you are the seller. There is no need to find a buyer. No uncertainty about whether you find a buyer. You already found one – us! We just need to get the paperwork done and it’s sold.

We Buy Any Property in England or Wales

We don’t care if your home:

• Is in disrepair
• Has mortgage arrears
• Is in negative equity
• Has tenants
• Has legal complications
• Is a flat, bungalow, terrace or anything in between

We’ve bought thousands of homes in every imaginable situation – and we can buy yours too.

Because of our Sale and Rent Back service, we’re one of the only house buying companies in the UK that’s regulated by the FCA (register number 522471). We’re also members of The Property Ombudsman (TPO) and the National Association of Property Buyers (NAPB).

We Pay Cash – With Zero Fees

That means:

• No estate agent fees
• No solicitor costs (we cover your basic legal bills)
• No EPCs or hidden charges
• No repairs required

We’ll give you a free, no-obligation offer within hours. And if you accept, we move at your pace. We aim to complete in 2-4 weeks. Prefer a slightly longer timeline? That’s fine too.

We Offer Certainty, Confidentiality and Control

You don’t have to worry about:

• Chains collapsing
• Sales dragging on for months
• Nosy viewings
• Last-minute price drops

Once we agree on a final price after a quick survey, that’s the price you’ll get.

We work discreetly and confidentially – and you stay in control throughout.