To remorgage is when you get a new finance deal on your home. The remortgage deal may or may not be provided by the same company providing the current mortgage.

There are several reasons why people choose to remorgage their property.
Mainly:

• To get a better mortgage rate on their property – as the market changes, more competitive deals emerge.
• To secure better terms or remove uncertainty. In times of economic uncertainty, some people are particularly keen to offset any perceived rises on a variable rate mortgage. So some will choose to remorgage to a fixed rate deal so that they always know what they are paying.
• To increase the size of their loan. Life events or personal needs or desires may lead to a person taking out a remortgage to increase the size of their loan in order to enable them to have the immediate finds to purchase goods or services.

Disadvantages of remortgaging

• You may have to pay an early repayment charge to your current mortgage provider if you remortgage before the provider’s stated minimum period for which you must make repayments to avoid incurring this charge.

Advantages of remortgaging

• Reduce your monthly payments.
• Maintain certainty over how much you’ll pay (fixed rate), or if market conditions are more favourable, enjoy a lower variable rate deal over the more expensive fixed rate deals.
• Consolidate your existing debts into one. Easier to manage.
• In a market with rising house prices, a remorgage deal allows you to free up equity.