Remortgage

A remortgage is when you switch your current mortgage to a new one, either with your current lender or a different one.

In plain terms:

• You already own a home and have a mortgage on it.

• You decide to get a new mortgage deal — usually to get a better interest rate, reduce your monthly payments, or borrow more money.

• The new mortgage pays off your old one, and then you just make payments on the new one.

People remortgage to:

• Save money if interest rates have gone down

• Avoid higher payments when a fixed-rate deal ends

• Release equity (borrow more against your home for things like home improvements)

It doesn’t involve moving house — it’s just about getting a better mortgage for the home you already live in.