How refinancing works
Refinancing (also called remortgaging) is a normal part of home ownership. It’s when you replace your mortgage with another in order to get better terms or borrow more.
It’s also a great opportunity to save thousands on interest and finish paying off your home more quickly. But how do you make the move to a better mortgage?
You may have seen or heard about mortgage interest rates that are lower than what you currently have. If you enter your loan details into our mortgage calculator you can see how much interest you’ll pay over the whole term. It’s easy to see that a lower interest rate could be a big help – so you’ll want to take advantage if you can.
However, refinancing your mortgage is not simply changing the interest rate on your existing loan. It’s actually repaying your current mortgage and taking out an entirely new one with different (hopefully better) terms. You either work with your existing lender or switch to a new one – whichever has the better deal.