Remortgaging is the act of moving your mortgage to a new lender or changing to a new mortgage with your current lender, without moving home.

The full range of mortgage types are available for remortgaging, including variable, fixed rate, discount, capped and flexible mortgages. Those mortgages targetted at the first time buyer will not be available to those wanting to remortgage.

A common reason for remortgaging is to take advantage of the fierce competition in the mortgage market and obtain a more competitive interest rate. Mortgage lenders are so keen to get your business that they will often offer deals that result in them losing money in the short term just to get you on board as a new customer. They then aim to make a profit from you over the long term.

Some of the more common reasons for remortging include:

• to get a better mortgage rate in order to reduce monthly outgoings
• to consolidate debt, such as outstanding credit card balances
• to meet home improvement costs, such as a new extension
• to finance a business loan

Before you decide whether a remortgage is the right way forward, you should take into account a number of potential costs that you may incur as a result of remortging. Visit mortgage costs for further details on each of the potential costs listed below.

• Legal Fees
• Valuation Fees
• Arrangement Fees
• Solicitor Fees
• Early Redemption Penalties
• Mortgage Indemnity Guarantee

The good news is that no stamp duty is payable on remortgages.