What is Remortgaging? A mortgage is usually taken out for a predefined time and under defined terms. Remortgaging involves taking out a new mortgage to replace an existing mortgage with a new set of terms.
Why Remortgage? The mortgage business is very competitive and is also affected by the economic climate and trends. As a result, the best mortgage deal for you now may not be the best mortgage deal for you for the whole of the mortgage term. Possibly you have come the the end of the period of a fixed rate mortgage and have reverted to the standard variable rate mortgage; maybe you are seeking to make better use of you savings with an offset mortgage, or possibly you are looking to take advantage of a current fixed rate mortgage offer.
What to look for? There are various mortgage packages and mortgage deal available - some may be specifically targeted at replacing existing mortgages. Review and number of current deals to find out what is on offer and find a competitive rate for your circumstances.
Changing mortgages will often involve costs for early redemption of your existing mortgage - sometimes these may be significant (for instance if you are tied into an existing fixed price mortgage, there may be higher costs associated with redeeming the mortgage within a certain time period). Some Remortgage deals may cover some or all of the costs associated with early redemption of your existing mortgage.
Compare online quotes to get up to date information on the current deals available and their specific terms and conditions. Mortgage calculators allow you to work out what a specific mortgage will cost you. may be made online but seek independent advice before making any final commitments.
Remember, a mortgage is security for a loan in the form of the provision of a right in property, such as land or buildings. Typically, if terms of the loan are not met, then the lender has the right to sell the property to recover the debt.