Completing a remortgage is done for a variety of reasons mainly to save money is the most common reason and can be alikened to witching Gas/Electric providers etc to save money.
A mortgage is a debt and the way of saving money is by acheived the lowest APR rate in terms of repaying it. If two customers borrowed exactly the same amount of money over the same number of years and one is paying a rate of 2% and one of 4% the 2% payments will be less they will both be repaying the capital but less interest charged on the lower rate
There are a lot of customers/clients that one there intial rate has ended then move on to a standard variable rate and generally speaking this is higher than a new rate or new deal offered by many lenders doing remortgages. Most lenders will also cover the main costs in remortgaging such as Valuation costs or legal fees.
The ideal time to review your mortgage is around 3-6 months before your initial rate ends and a new deal can be applied for however its important the new deal does not complete until your current rate has ended to avoid costly , penalties sin some scenarios it can be beneficial to move before the rate ends but its important to seek advice and our qualified advisors will advise on this scenario.
Remortgage for a better rate - One of the most common reasons to remortgage there can be considerable savings from moving from a high standard variable rate to a new deal.
Remortgage for saving money - is again pretty much the same thing as a better rate some people will chose to keep the mortgage term the same and benefit from a lower monthly payment and some will decide to reduce there mortgage term so pay the same monthly payment but reduce the years and months the main factor in this will be the clients preference and monthly budget