Remortgaging is when you replace your existing mortgage with a new deal. Historically, customers have been very loyal to their mortgage lender, staying with them for the life of their loan. However nowadays there is more and more publicity about changing mortgages to get a better deal, so they have become much more competitive.

There are two reasons to remortgage your house. One is to remortgage without increasing the size of your loan but moving to a more competitive deal to reduce your monthly outgoings. The other reason is to remortgage to release equity tied up in your house, giving you a cash lump sum, for instance if you wish to extend your house or buy a second property. You could also use this money to pay off existing debts at a much more competitive interest rate. This will increase the size of your loan, and possibly your loan period.

If you want to remortgage your property, there are several steps to follow.

1. Research the mortgage market. Work out which deal is best for you. Find out if your current lender can simply move you onto a more competitive rate.

2. Compare your current deal with several others you are interested in to find out which is best for you.

3. Ask your lender to send you a redemption statement. This will tell you an exact amount to be repaid if you move your mortgage including any redemption penalties.

4. Find out whether any upfront costs will be charged. Your current lender may charge a fee for releasing the deeds; you may have to pay a valuation fee or an arrangement fee for your new deal. You also need to budget for legal costs. It is possible to get a deal where your costs are paid by your new lender.

5. Calculate whether you would gain by moving your mortgage.

Other areas of remortgages include: adverse credit remortgages, poor credit remortgages