Remortgaging explained - can it solve your financial problems?

Once borrowers have had the current facts of remortgaging explained to them, many find that it might just be the solution to all many of their financial problems.

Remortgages are a replacement for home owners existing mortgage and are a potential source of reducing monthly mortgage outgoings or to shorten the term of the mortgage for the same repayment. A remortgage can be obtained from your current provider but many find that a new lender is able and often far more willing to offer the very best mortgage deal.

Those borrowers who find the low interest rate period of their mortgage has reverted to the lenders standard variable rate (SVR) find remortgaging can help secure a better deal, especially as present interest rates remain low. This is a very useful way of reducing your monthly mortgage outgoings. Home owners can usually obtain a remortgage at a lower rate and cost than the lenders SVR.

When consultaed lenders who offered remortgaging explained that they have many mortgage packages with competitive rates currently on offer. The most common types of remortgages that lenders have are discounted or capped rate mortgages, tracker mortgages and fixed rate mortgage deals with differing lengths of terms.

Remortgaging also provides a way of releasing equity from your property for home improvements as it is frequently a much cheaper option than moving house with all of the expensive associated fees. For many borrowers, remortgaging, once explained properly seems an obvious solution to the need to raise funds for one-off expenses such as a wedding or a special anniversary holiday. Some lenders also provide flexible remortgages for those customers who feel the most important factor of their mortgage are underpayments or payment holidays.