The most common reason for homeowners looking to effect a mortgage remortgage is to secure a better interest rate on their loan. Alternatively you may have to remortgage if you want to move house. Even if your current lender will allow you to transfer your mortgage in theory, it will require solicitors to be involved, and a new valuation.
You may also decide that a mortgage remortgage is right for you if there is an opportunity to save money on your monthly repayments even before your current arrangement finishes. remortgaging does involve some costs though and these have to be balanced against any potential savings on your interest repayments. There may also be penalty charges associated with the early termination of your existing mortgage arrangement.
Mortgage providers are being much more stringent when setting lending criteria than they were 2 or 3 years ago. With the current credit crunch this is likely to remain the case until 2010 or beyond according to some economists. You may well not get such an attractive deal when you come to undertake a mortgage remortgage.
If staying with your existing lender, then remortgaging should be straightforward. Remember you do not have to stay with them if you can get a more attractive loan elsewhere It may be worthwhile to get the assistance of a professional mortgage broker. Mortgage brokers are regulated by the Financial Services Authority, meaning they are bound by a code to treat customers fairly. They have to find the deal that is right for each borrower and can not just recommend products that may be lucrative for themselves.