Remortgage
According to Wikipedia, a remortgage is the process of paying off one mortgage with the proceeds from a new mortgage using the same property as security.
Usually people remortgage to a new lender once their existing mortgage product comes to an end in the hopes of getting a better deal with a new lender, or even borrowing additional funds for things such as home improvements.
Usually, once your existing mortgage deal ends, you will revert to the lender’s Standard Variable Rate, which is typically much higher than their fixed term products. Between four to six months prior to your deal ending, you can secure a new deal with a different lender so that the remortgage will take place the day after your current deal ends. A good mortgage broker will search for the best new deal to suit your needs and carry out affordability and credit checks with the new lender, just like if you were looking for a mortgage to purchase a new property. This is because they must confirm that the remortgage is still affordable for you, and that you will continue to be able to comfortably make the repayments.
It can be tricky to know which lender will treat your income in the most favourable way, but a good mortgage broker will know exactly where to go for the most suitable mortgage to meet your needs.
If you would like to see if you can secure a better remortgage deal, get in touch today.