Re-mortgaging is easier than you might think. Lenders often pay most or all of your legal and other costs. Increased competition in the mortgage market means new customers are often offered better rates than the lender's existing borrowers pay.
If your property has risen in value significantly or if you have repaid a substantial amount of the mortgage, some providers offer you a re-mortgage product which enables you to cash in on the increased value of your property. Re-mortgaging allows you to realise cash out of the increased value in your property without selling or moving home or gives you the opportunity to negotiate a better deal. However, be aware that property values fluctuate and re-mortgaging should be considered as if a new mortgage is being taken out. You will need to consider your personal circumstances especially your personal cash flow.
Who could benefit?
If you have a variable rate loan of more than £35,000 with little or no redemption penalties you could get a better deal. Even with redemption penalties on a larger loan, re-mortgaging may still be attractive.
