Remortgaging your home

To remortgage, you replace your current home loan with a new mortgage. You donbt usually have to use a different financial lender to remortgage, though if you find a better or cheaper provider, then the decision is ultimately up to you.

Before you apply for a new mortgage, you should consider working out the total cost of the new loan youbre looking at; including any interest that would be added over the months that youbre repaying the loan. The total cost will vary from mortgage to mortgage depending on several factors: interest rates, fixed period loans, discounted mortgages, and tracker rate mortgages. It might be helpful to use a mortgage repayment calculator to figure out the full repayment price.

Now, do the same for your current mortgage plan. This will give you an idea of the difference between your mortgage with your current financial provider (who is more than likely going to give you the same deal if you remortgage), and a different financial provider (who could possibly offer you a better rate).

Herebs where it gets a little tricky. When you switch providers, you use money from your new mortgage to repay the rest of your existing one. Bear in mind that repaying a mortgage early incurs charges and remember to take these charges into account. Plan ahead when youbre considering remortgaging, because the process takes time. Not as much time as buying a new home, but still a significant amount, especially if youbre switching lenders for the new mortgage.