Finance >> Remortgage

Remortgage

“Remortgage” means to change your mortgage lender and to switch your mortgage liability to a new deal. You may remortgage to a new deal with your existing lender. As soon as your Remortgage application is approved your existing mortgage dues will be paid off and you can switch to a new contract. You also have an option to ask for a higher loan amount on the basis of a higher home equity.

You might decide to remortgage for various reasons. Some of them could be
  • You are being offered better and more reliable services.
  • More attractive terms and conditions and a value for money deal.
  • You are being offered an increment in the loan amount.
The base rate of interest has fallen and so it is not advisable to pay at the previous terms.

You have decided to switch to a different Mortgage type i.e. from a fixed interest rate mortgage to a variable rate mortgage as interest rates are expected to fall. Or you might want to switch from a variable interest rate mortgage to a fixed one because you wish to even out your monthly outgoings.

Remortgaging has become an attractive option in the United Kingdom in the recent years. If you maintain a good credit history you will have a variety of options available in the market and you will surely make huge savings from the new deal.

Competition has been fierce in the Remortgaging market in the recent years. So much so, that each competitor tries to provide a better deal than the other. Hence even if you are getting a better deal which cuts down your interest liability by 1.5% can make a huge difference over the tenure of the loan.

However always remember that your lender is offering you an attractive deal on the security of your home. Therefore always pay your dues in a timely manner and maintain a good credit rating.


We also have a calculator to help you make your decision easier. Click on the link below for your preferred Remortgage calculator.
Remortgage FAQs and TIPS