Let?s begin with some definitions. 'Arrears' means that you have missed the deadline for your monthly mortgage repayment. In other words, arrears are overdue or unpaid debts. On to a general definition of remortgage; this is a financial product whereby you pay off an original mortgage with money from a new mortgage. Often this is done in order to secure a lower interest rate from a (different) lender, which would reduce your monthly repayments.
An arrears remortgage means that you have missed repayments in the past, and therefore need to secure a new mortgage deal with the negative implications of mortgage arrears on your credit report. As you would imagine, the fact that you have had trouble making your mortgage payments in full and on time each month in the past means that lenders will be much more wary about lending money to you. You will therefore be offered a less competitive interest rate with an arrears remortgage, because the lender is counterbalancing the risk of you defaulting on your payments with an increase in monthly revenue from the loan.
You may be able to sign an arrears remortgage with a mainstream lender, however, researching mortgage lenders that specialise in adverse or arrears remortgages may be a better option, considering their knowledge of and experience with these situations. However, before you look around, check to see if you are liable for any charges for leaving your existing mortgage deal. For the first few years, all mortgage deals have a penalty in place should you decide to leave, and you need to weigh this up against the possibility of paying less each month. It might be that it makes more financial sense to stay put, wait until your tie-in period ends and concentrate on rebuilding your credit rating.