A remortgage is where you take out a new mortgage on the property you currently own, either to replace your existing mortgage, or to borrow additional funds against your property.

In some cases, homeowners can save hundreds of pounds a year by moving their mortgage to a more attractive rate. Remortgaging can also work if your property has increased in value and you want to release some money from the equity tied up in your home, or if you want to reduce the term of your mortgage by increasing your monthly payment.

Benefits of remortgaging

• Switch to a better deal- save money
• Lower overall cost of mortgage- repay your mortgage quicker
• Repay debt
• Gift to a child

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.