In the past, many people never bothered to remortgage, but recently that situation has finally begun to change. According to the Council of Mortgage Lenders, in January 2003 (for the first time ever) remortgages accounted for more than 50% of the total monies advanced by mortgage lenders.

Lower costs:
One of the most common reasons to consider a remortgage is to reduce your mortgage costs. If a lower interest rate is available to you, you can either benefit from lower monthly mortgage repayments, or keep the monthly repayments the same, thus repaying the loan quicker and reducing the overall term of the mortgage.

Raise cash:
Another reason to remortgage is in order to raise additional cash. Due to the rapid rise in property values over the past few years, many people now have mortgages which are well below their home's current value. The difference between the property value and the mortgage debt is known as equity. The majority of mortgage lenders will allow you to increase the size of the mortgage in order to tap into some of this equity. The cash raised can be used for a variety of purposes, such as home improvements, holidays, a new car, or the consolidation of existing debts.

 In the current market it is sometimes possible to raise additional funds during remortgaging and not have an increase in initial monthly payments.

No move, no hassle:
Unlike moving house, arranging a remortgage can be surprisingly hassle-free. There are no chains of buyers to worry about, so the whole process can often be completed in a few weeks.

Counting the costs:
In terms of costs there is no stamp duty to be paid, as you are not purchasing a property. In some cases there may be an arrangement fee from the new lender. There may also be Early Repayment Charges on your existing mortgage, our broker fee (where charged) and  solicitors fees. You will need to take all of these into account when assessing how much money you could save by remortgaging.