Re-mortgage

Re-mortgaging is in simple terms the process of switching your existing mortgage to a new one, usually with a different lender. To re-mortgage you secure a new mortgage against your property and use the money from this to repay the previous existing mortgage, effectively transferring it. Changes in base interest rates and introductory offers can often mean that the rates available at present are lower than those agreed for your mortgage when you took it out, remortgaging is the key to allowing you to take advantage of competative interest rates and better mortgage deals.

Reasons to Re-mortgage
There are so many reasons why a re-mortgage could benefit you financially, so we have just mentioned the most important ones here:

Save money - Reduce outgoings
By switching to a mortgage deal with lower interest rates you could save a lot of money in the long term. When you consider the amount of money involved, and the time over which the interest is being charged on it, you can see that even a small reduction to the interest rate can result in significant savings.

If you are primarily looking to reduce your monthly outgoings by remortgaging, then not only should you look for a lower rate, but you could also increase the term of the mortgage, as spreading the repayment over a greater period of time will reduce what you pay each month. But this will increase the amount payable in the long term/overall.

Debt consolidation - All debts into one mortgage
Mortgage interest rates are some of the lowest available compared with other loans. By converting all your existing debts into one more easily manageable low interest re-mortgage you could save money and make life easier.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured against it. Securing short term debts against your home could increase the term over which they are paid and therefore increase the overall amount payable.

Capital Release - Releasing the positive capital in your home
If your home has increased in value since you got your mortgage you may be experiencing positive equity. This means that the current market value of your home is greater than its current mortgage value. Releasing the capital can be the cheapest form of borrowing.

Other reasons - Unique situations
There are also other unique reasons for remortgaging that apply to specific lenders - such as remortgaging to a current account to make your money work more efficiently, or switching to a fixed interest rate in times of high interest rate fluctuation.

Some lenders offer re-mortgage packages with a particular reason in mind, such as home improvement packages and debt consolidation packages. Whatever the reason for remortgaging there is no denying the savings you could make.

How to apply for a re-mortgage
There are so many re-mortgage deals available from high street and other lenders, it can be difficult to chose the right one for you. You can also use this website to help choose by looking through the lender reviews or by enquiring online and letting an expert get you the most suitable deal.

Remember it's free to enquire online through Mortgage Helpline and there is no obligation to complete the deal.

Enquire online and let an expert get you the most suitable re-mortgage deal

The Mortgage Helpline (UK) Ltd is an appointed representative of Home Of Choice Ltd which is authorised and regulated by the Financial Services Authority. Commercial Mortgages and some Buy to Let mortgages are not regulated by the Financial Services Authority. Your home may be repossessed if you do not keep up repayments on your mortgage.