A remortgage is the process of paying off an existing mortgage with capital raised from a new mortgage using the existing property as security.
There are many reasons why customers choose to remortgage, raising capital for personal use i.e. debt consolidation, family holiday etc.
The most common reason for anyone remortgaging is to search the market for a better deal before the current lenders Standard Variable Rate (SVR) becomes payable after their deal term ends. If you change your mortgage before the end of your deal you may have to pay a fee to do so (called an early repayment charge) however sometimes it can be advantageous to pay a penalty to your existing lender to gain savings. Remortgaging can ensure that you are always paying the lowest possible amount and you could even pay off your mortgage earlier than you planned.
There are a number of reasons to raise additional money from your property including Home Improvements, New Car, Medical Bills and Deposits to assist Children to get onto the property ladder.
You maybe able to raise money to pay off unsecured debts including Credit Cards, Personal Loans, Store Card, Catalogs etc. This could lower your overall monthly payments but could mean that you pay more interest overall.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.