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Guide Contents

What is a remortgage?
What will the remortgage costs be?
Knowing what to look for in a remortgage search
The remortgage application
Remortgaging FAQ’s
Where can I get more remortgage help?
Remortgages Useful Terms

What is a Remortgage?

A remortgage simply means that you are switching your mortgage onto a new deal and probably a new mortgage lender. It doesn’t necessarily mean that you are increasing the amount of the loan.

People choose to remortgage for a few different reasons.....

• The end of your current deal may be near and you may want to take advantage of another deal instead of going onto a variable rate of interest.
• You may benefit by changing your deal midterm, ie: Supposing you had a £60,000 interest only mortgage paying the standard variable rate of 6.54% and you could change to a fixed rate
  If you're remortgaging, ask your lender for a redemption statement. It details your mortgage balance, remaining term & redemption penalties.
  mortgage of 5.19%. Your monthly payment would fall by £67.50. Suppose you had to pay a redemption penalty of £1000 to change deals. Over 2 years you would save £1,620 and is therefore worth doing.
• You may have some equity in your home and want to remortgage to release some of that cash and make some home improvements. In past years, people have remortgaged and increased their loan, then used this spare cash on other luxuries such as holidays etc. But, due to recent economic activity, Lenders are being much more cautious about how the extra loan is being spent.

Whatever the reason is for remortgaging, it is basically all about saving money!

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