Cheapest remortgages

Remortgaging means replacing an existing mortgage with a new one from a different lender and getting the cheapest remortgage available to you although it is not uncommon for people to say they have arranged the cheapest remortgage when they have simply taken a new remortgage from their existing lender.

Here are some good reasons to find the cheapest remortgage:
You can take out the cheapest remortgage at a lower interest rate which will reduce your monthly mortgage or loan payments. This is the most popular reason. If this is your motivation you should look at the rate you currently pay and then see if there are any cheap remortgage rates on the market.

To raise cash or release equity. This is an option if your property has increased in value, or if you’ve paid off some of your mortgage, and is simply a matter of borrowing more than your current mortgage debt.best-remortgage-guides.asp  

It’s cheaper to extend than to move house. You may find that it’s cheaper to remortgage to raise money for an extension than to move home if you add up all the removal costs, stamp duty etc. This will be a very common option in today’s market.

Remortgaging to consolidate debts. This is cheaper than taking out a personal loan or using credit cards. This is because interest rates on mortgages can be as low as 6% while the cheapest personal loan rates are about 9% and standard rates on most popular credit cards are as high as 19%. Therefore to consolidate bills, personal loans and credit cards, all you have to do is increase the size of your mortgage and use the money that you’ve raise to pay off your more expensive borrowings. This is not advisable as you will be placing the security of your home at risk.