Remortgaging can allow you to transfer your current mortgage from one lender to a new lender without selling your property. In doing so you could reduce your monthly payments. You could reduce your monthly payments by switching to a lender with a lower standard variable rate or to take advantage of a new lender’s incentives such as a fixed, discount or capped rate.
Another thing that remortgaging allows is a way to consolidate debts. By using the equity in your property to borrow funds you could pay off credit cards or other loans. It could allow you to increase you mortgage to release equity in your property. You may for example wish to borrow additional money for home improvements or to buy a new car.
Depending on your circumstances, remortgaging may save you a great deal of money but you must ensure that you are aware of any early repayment charges that you may have to pay to your existing lender. With so many lenders and range of offers it makes sense to remortgage each time you come to the end of your tie-in period with your lender to take advantage of the lower interest rates available.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. When consolidating debts the new re-mortgage may have a longer repayment term and therefore increase the total amount payable.

With the current decline in house prices and the uncertainty in the housing market, many people are looking at the option of freeing up equity in their flat or house to make improvements to the property.

Kate Lancaster, a freelance designer, used funds from remortagaing to transform her flat. “I travel around quite a bit through my work but decided as the value of my flat had grown that it was time to make some improvements. It was not a very nice flat before but after spending almost £50,000 on doing it up, it is now a lovely two bedroom flat. The improvements have definitely added value to the property and also make it a nicer space to live in,” said Kate.

Paul Greenwell was able to take a chance on his life long dream through remortgaging. A budding Tarantino, Paul has always wanted to make a movie. He used money that he borrowed through his mortgage to set up his production with a good friend. “It was a bit of a gamble but things seem to going well, we are near to obtaining funding for our first film project which is just amazing,”  said Greenwell.

Whether it’s making important home improvements or trying to making a film there are a number of ways how remortgaging could help you. Just be sure to speak to an advisor before planning any decision.