Remortgage Loan

A remortgage is where a borrower moves a mortgage from one lender to another, or even to another mortgage product with the same lender, without moving home. This may be carried out in order to raise additional funds by releasing equity in the property and/or to save money by switching to a more suitable mortgage agreement.

With a competitive mortgage market, remortgaging has greatly increased in popularity and many borrowers can remortgage to secure a competitive interest rate. However, it should be noted that remortgages carry associated costs and the borrower should also be wary of any redemption charges when considering a remortgage. Savings can often be partially or wholly eaten up by the transaction charges associated with moving the loan.