Many homeowners in this position ask: ‘Can I get a mortgage on a house I own outright?’
The short answer is yes. Here are the most common options:
Remortgaging your property: Even if your home is fully paid off, you can still take out a mortgage against it. This is often called a remortgage, even though there’s no existing loan to switch from.
You can use this cash for a variety of reasons – home improvements, helping family onto the property ladder, or buying a second home.
Taking out a secured loan: Also known as a homeowner loan, this is a way to borrow money using your home as collateral. It usually allows for larger borrowing amounts and lower interest rates than unsecured loans.
Equity release (if you’re over 55): If you’re aged 55 or older, you may be eligible for an equity release product like a lifetime mortgage or a reverse mortgage. This allows you to access some of the money tied up in your home, usually without monthly repayments.
Each of these options comes with pros and cons, so it’s important to speak to an independent mortgage advisor before making a decision.
Can I get a mortgage on a house I own outright?
Yes, and it’s more common than you might think.
Here’s how it works:
- A lender will assess your income, credit history, and the property’s value.
- You can apply for a standard residential mortgage, or even a buy-to-let mortgage if you plan to rent the property out.
- Your home becomes collateral for the loan, just like with any other mortgage.
Related: Bridging loans explained: what they are and how they work
People take out a mortgage on a home they already own for many reasons, including:
- Funding home improvements
- Starting a business
- Buying another property
- Managing estate planning
It’s important to understand the risks though, once you borrow against your home, it can be repossessed if you fail to repay the loan.
Speak with us about your mortgage today
I own my house outright and want to buy another – what should I do?
If you’re looking to move or invest in property, owning your current home outright gives you strong leverage. You can:
- Sell your current home and use the full proceeds as a deposit, or even buy another property outright again
- Rent out your current property and use the rental income to support a mortgage on a second home
- Remortgage your existing home to raise a deposit for the new one
Related: Remortgaging explained
Whether you’re upsizing, downsizing, or buying to let, the key is to weigh up the long-term financial implications and get advice before making any big decisions.
What to keep in mind going forward
Owning your home outright puts you in a strong position, but it’s still worth planning carefully for the future:
- Keep up with insurance and maintenance – Just because the mortgage is gone doesn’t mean expenses disappear.
- Make a will – If you haven’t already, this is a good time to ensure your property is passed on according to your wishes.
- Think ahead – Whether it’s retirement planning, helping family, or investing, your home can play a big role in your financial future.
Related: Why brokers are more important now than ever?
Owning your home outright is a big achievement and it opens the door to a wide range of options. Whether you want to borrow against it, buy another property, or simply enjoy being mortgage-free, it’s all about choosing what’s right for your lifestyle and goals.
At Parkers, we help homeowners at every stage of their journey, from buying your first home to making the most of one you already own. If you’re exploring your next move, get in touch with your local Parkers branch for friendly, expert guidance.
