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Remortgage means you are changing your existing mortgage at your current property, either with new mortgage lender or changing the terms with your current mortgage lender. This also means you are not moving to a new property and the mortgage is still secured againts your current property.
If your current mortgage agreement ends, you’ll be automatically transferd on to the lenders standard variable rate, which are typically more expensive so remortgaging can help you find better mortgage interest rates.
If you are currently on a standard variable rate mortgage and affected by a raise in the Bank of England’s base rate, you can find better fixed rate mortgage by remortgaging and also have peace of mind that your rates are locked in for a fixed period of time
You can take equity from your existing property if you are looking to raise a lump sum for paying other debts or home improvements. This will increase your mortgage loan, but if you have lived in your property a long time the value could have increased so the LTV may not have changed so you can still get great rates
You might be able to find another mortgage lender who allowes you to make over payments at a greater rate than yout current lender, this can help you save thousands on your mortgage because the interest that you pay on the overall mortgage will be cut because you will borrowing over a shorter period of time. Typically overpayments of 10% of your remaining balance per year is standard.
By remortgaging you can benefit if your property value has increased as the LTV (loan-to-value) would go down you and can get better interest rates. Equally this is the same if you have been making repayments on the property for a number of years, the LTV will be reduced as you wouldn’t need the original amount you borrowed
Switching a to new mortgage deal when your current one comes to an end is know as remortgaging. You can switch to a new lender or stay with the same lender on a new mortgage deal with the same property.
It will depend on your own financial situation and the lenders criteria. Mortgage lenders usually look at your expenditure, income and credit history to decide how much they can lend you.