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. The reason is to save money by switching to a more suitable mortgage agreement and/or raise additional funds by releasing equity in the property.

With a competitive mortgage market, remortgaging has greatly increased in popularity and many borrowers usually remortgage to secure a competitive interest rate. 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.