UK Mortgages and Loans is the complete resource for mortgages, remortgages, adverse credit and all types of UK loans and UK residential mortgages.

UK Mortgages & Loans -> Remortgage / Remortgaging

Remortgaging is the process by which you pay off your existing mortgage by taking out another loan, typically at a better rate than the last. This in turn saves you money on your monthly repayments. Savings can reach up to £3000 a year if you make the right choice.

Remortgaging has proven to be as popular as dining out at a fancy restaurant. Over 50% of mortgage business last year was through remortgaging alone. However, like most of us that would like to dine out, we’re just unsure of where to do it.

As with remortgaging, a lot more people would like to remortgage but are unsure of where or even how. UKML is on hand to offer you free information regarding how to remortgage and where the best place’s are to get a great deal.

Frequently, people tend to choose their existing mortgage lender as the place to go for a remortgage. This is mainly done for two reasons. The first being loyalty. Customers believe that loyalty towards their exisiting lender will get them a better deal. This is a common misconception, as you are more likely to get a better deal from a lender other than your existing one. The second reason customers tend to stay with their existing lender is laziness. It is simply easier to stay put, there is no extra paperwork when sticking to your current lender. However it is commonplace in today’s competitive world of finance for another lender to offer you a better deal, and take care of all the paper work for you at no extra cost.

The reason why you are more likely to get a better deal on a remortgage by switching lenders is ‘competition’. Many, if not all lenders want your custom, and will try their hardest (within their limitations) to get it. The trouble with everyone wanting your custom is that there is a vast amount of companies to sift through in order to find the best deal.

This is where UKML come into play. Our researchers are currently looking for the best deals and will post them on this site in the near future.

You may be asking yourself “Why don’t I just go down to the bank and ask them?” Well, there’s nothing to stop you from doing that. The bank probably has helpful staff who can answer any of your questions, although they are also there to sell you their products. So you’ll end up getting more than just helpful advice, you’ll probably be getting slightly bias helpful advice. At least online you can gather information and make decisions based on what you feel is right and wrong.

Another reason why UKML feels that online services are better is the simplicity of the application. Most online forms take about 2 minutes at most, and the reply is just as quick. With a high street bank you are more than likely to have to fill out a form 10 pages long and then wait for a reply within 7-10 working days.

Remortgaging can save you money, or help you raise funds in order to make home improvements, buy a new car, go on holiday etc. By investing in the house through home improvements, eg an extension or a new kitchen, this will increase the value of your home creating positive equity. This means the value of your home is worth more than at the time of valuation for the mortgage/remortgage. This positive equity can be released at any point to help with the monthly repayments or go towards more home improvements.

Whatever decision you choose to make with the extra money from a remortgage, make sure it’s the right one. Although a new car or a holiday may seem tempting it may prove financially suitable in the long term to inject the money back into your home.