A remortgage is where you take out a new mortgage to replace your existing mortgage, usually to try and obtain a better deal but there are also other reasons to do this. The most common is simply that your current mortgage has come to an end and you are looking to switch to a new product. Some people may have had a change of circumstances and may want to amend the numbers of years remaining on their term. Or it may be that the new lenders offer something that your current provider does – for example, the ability to overpay on your mortgage.
As part of the re-mortgage process, the lender will need to arrange a valuation on your property. Depending on the lender and the nature of the case, this can often be done automatically without actually having to visit the property. However, some lenders will drive by or even do a full internal inspection to obtain the value of your home.
If you just approach your existing provider, you are limiting your options because this does not guarantee that you will get the best deal. Whilst it is normally quicker to arrange a product transfer with your current lender, interest rates are constantly changing every day and therefore it is vital to research the market to get an idea on what other rates are available to you. You may also need to seek advice to clarify which initial term you require. Remember to always check with your existing provider if there are any changes to come out of your current deal as this could have a big impact on any savings.
You also have the option to do additional borrowing when you seek a new deal. This could be for numerous reasons, for example, you may want to do some improvements to your home. All lenders will have slightly different criteria and affordability calculations so it is always beneficial to seek advice in this area to ensure you are on the best deal suited to you.