Yes, you have hears well! You can change your mortgage lender without having to move from your house! And how is this possible? You can get a new mortgage product with better rates and payment options instead the old one. The better financial options will ensure you can repay your old mortgage using the return from the new one.

And what should you know about the process itself? In order to remortgage your property you will need to go through a legal process which involves a valuation that you have already had when purchasing your property. The good news is that lenders who offer their products specifically to those who seek a remortgage, usually will pay the legal fees and also for the valuation procedure. So you will not have extra costs related to the re-valuation!

Let’s go on and talk about those things you should check before applying for a remortgage! It’s very important to know if your current lender will make you pay redemption penalties for switching your loan. You should know that the administration charge for closing the mortgage loan is a common and unavoidable cost. Also check if valuation and legal work for remortgaging is provided for free of charge! Make sure that you check all the other information and the overall cost of your new deal!

Why do you think people choose remortgaging? Usually people remortgage to get a lower mortgage rate which also reduces the monthly payments. Other reasons might be to release equity in order to pay the home improvement costs, to finance a business loan or to consolidate a credit card debt for instance. Another common reason is when people want to move house. In this case a new valuation is required because of transferring your loan to the new property, even if you stay with your existing lender. This will be possible only with a remortgage.

But how does the remortgaging process look like? If you choose to remain with your current lender then the process will be quite simple. You should discuss about the new terms and conditions in time, meaning that prior to your mortgage term expiration. Remember that you do not have to accept the unfavourable offers, as many new lenders might provide you with better deals. So do have a look round!

On the other hand, if you feel quite confused by the various offers and choices, then it is recommended for you to ask the help of a broker or an advisor. You can be sure that they give you a clear picture about your case and options, they can find the best available loan for you, as they have access to remortgage products which cannot be find by ‘simple clients’. All mortgage advisors or brokers are supervised by the Financial Services Authority, and this ensures they give you an impartial advice. However, they might have fees for their services, so be sure you take this factor into account!

The next step is to take a look at the remortgage products that are present on the market and see what factors you should check. Very many types of remortgage products exist ranging from those with fixed or with capped rates, flexible deals, discounts, to the so-called ‘base-rate trackers’, but there are many others as well. It is essential that you know both the advantages and disadvantages of the particular product you would like to choose. A factor called annual percentage rate might provide you with a guide about the real cost of a loan, so with this rate you can compare the different offers. Don’t hesitate to do this comparison!

It’s time to talk about interest rates you should rely on when considering a remortgage! No matter what kind of remortgage product you choose you should be aware of its rates, and their application period. It is essential that you calculate if you can save money if this new rate will be applied. You should also be informed how much you are likely to pay monthly for your new deal.

Last, but not least we should mention the costs which is a crucial factor when choosing a remortgage product. Various fees might appear namely the arrangement and solicitor fees, early redemption charges, exit fees, and also a mortgage indemnity guarantee. The good news is that you do not have any stamp fees to pay. You should calculate with a £800 total cost in case of remortgaging.

So why to end your current mortgage and start a new one? Because of lower interest rate, which is possible as your current mortgage’s initial deal period might have come to an end and you are going to enter an uncompetitive standard variable rate. In order to avoid this, many people chooses to take out a remortgage. By this step they transform the old deal to a completely different one provided by a new lender. In this way you can save a large sum of money, whilst having the benefit of getting free valuation and no legal charges, as these are paid by your new lender. All in all, bear in mind that if you are well-informed, remortgaging can be very favourable for you and it is a quite simple procedure. Have a good luck with your remortgage!