How Remortgaging Works
Why Should I Look To Remortgage?
You may have already heard the term remortgaging, whether it’s from a family member, a friend, or from a TV advert. But if you are coming to the end of your first ever mortgage term then the chances are you haven’t gone through the remortgage process before.
Remortgaging is simply the process of switching to a new mortgage deal either through the same lender or by shopping around for another deal. We tend to look at remortgaging when the rate on a current mortgage deal is coming to an end. That could be in the form of either an introductory tracker, fixed, or a discounted rate ending.
You should always check that you are not subject to any early repayment charges when leaving your existing lender, although this is less likely to be charged when a deal has reached its end.
What Happens If I Don’t Remortgage?
If you do not remortgage when a product ends then you may be switched across to a new rate with your current lender that could be either higher or lower than the one you were enjoying, as you are often entered onto a standard variable rate mortgage product (SVR). Those with a poor credit history may be concerned that they won’t be able to remortgage, but there may also be deals out there to accommodate you.