Homeowners may be totally unaware that they need a remortgage and could be better off financially by getting one.  When their current mortgage deal ends they may think that their deal was intended to end and convert them over to their lender’s standard variable rate (SVR).  They paid on a good interest rate for a term and now that it is over they have a new deal and are stuck there unless they move home and sell the property.  A remortgage gives a homeowner a new mortgage deal in their current property when they end their current deal early or when the term of their current deal expires.

Remortgage is a word that to some homeowners means going through all the paperwork and stress of filing for a mortgage again.  They would rather just keep things as they are than putting in the effort.  It is true that the paperwork has to be filed again but the process can in many cases be much less stressful.  Since the owner is basically paying off the mortgage debt in full on the old deal and getting a new deal then the property and the owner remain the same.  It is only the debt level and interest rate that will be changing.  Those that go through their current lender can often find the process to be handled mostly in-house and little is required by the homeowner compared to when the property was first purchased. 

Moving outside of the current lender can be just as easy and actually should be a consideration.  Homeowners may well find a better deal outside of their current lender’s offers.  Shopping for a new remortgage is not only helpful in finding the best deal but in getting the homeowner the security in a deal that is less risky than paying on their lender’s SVR.  At the first of May many lenders raised their SVR levels and put those homeowners that hand not remortgaged at the end of their current mortgage deal into a higher interest rate level.