What does remortgaging mean?

A remortgage means that you switch to a new mortgage with a new lender, or to a different mortgage with the same provider. You’ll probably want to remortgage when you reach the end of a promotional fixed rate or tracker rate deal so that you don’t end up paying your lender’s standard variable rate of interest, which is likely to be more expensive. It can be a good way to find lower interest rates and better mortgage terms. 

Why remortgage?                                                                                                                                     Remortgaging may be suitable for you if:

• The introductory deal on your current mortgage is due to end soon and you’ll be put on your provider’s SVR, which tends to be higher. Remortgaging can move you on to a lower interest rate.
• You want to consolidate multiple other debts.
• You’re on a high interest rate, If you’re on a variable rate mortgage, a rise in the Bank of England base rate can increase your mortgage payments. If you remortgage you could find a more competitive deal.
• Mortgage overpayments, You may want to remortgage to find a provider with more flexible terms that lets you overpay on your mortgage without penalty.
• You need money to fund home improvements.
• Increased property value, If your property value has increased, your lower loan-to-value might help you qualify for better interest rates.
• You have a large expense coming up, like a wedding or school fees, or you want to help your children with a deposit, etc.
• Offsetting savings, If you have built up some cash savings, or perhaps had an inheritance or windfall, you can use this money to offset against your mortgage debt with an offset deal.