UK REMORTGAGES

What is a remortgage?

A remortgage is the process by which you change from your current mortgage to a new mortgage. A remortgage means you are ending your current mortgage scheme and switching to a new scheme. A remortgage generally involves changing mortgage lenders because most lenders do not generally offer remortgage schemes to existing customers.

As well as being used to gain lower interest rates, remortgages are also used for releasing equity. Releasing equity is a good way of raising additional finance. If your home has positive equity - its market value is greater than the outstanding mortgage - you can increase the size of your mortgage.

Homes throughout the UK have increased in value over the years, meaning that many home owners are experiencing positive equity. In their cases, they could elect to remortgage and release this equity, raising additional finance.

What are the benefits of a remortgage?

A remortgage is a great way of saving money, it is also a common way of raising finance. A mortgage is one of the cheapest forms of loans around, so if you're looking to raise finance, it can make sense to remortgage.

Today, home owners are less likely to show long-term loyalty to their mortgage lender, instead preferring to remortgage if it results in a better deal. Transferring your mortgage to a new lender or a remortgage to a new lender can save you money and raise finance.

A remortgage can be used for a variety of reasons:

low interest rates - a remortgage can allow you to gain a better rate of interest and reduce your monthly mortgage repayments.

debt consolidation - a loan is taken out to pay off current debt, thus consolidating the debt into one controllable, longer-term loan repayment.

raise finance - a remortgage allows home owners to raise finance. As its interest rates are among the lowest of all loan types, a remortgage is an ideal solution to finance issues. Typical reasons for raising finance via remortgage include home improvements, car finance, arrears and debt issues.

Visit the Remortgage FAQ

UK Loan Advice, sponsored by UKloan24

This guide to remortgages is sponsored by UKloan24.

If you are a home owner and are looking to gain lower interest rates or raise finance, UKloan24 can find a remortgage deal for you.

At UKloan24 adverse credit records, CCJ's, mortgage arrears or debt issues WILL NOT affect your remortgage application.