More and more people are looking for a UK remortgage in order to secure a lower interest rate to replace their current mortgage. The benefits of a UK remortgage can be lower monthly repayments or shortening the mortgage's term. Because of this surge in personal research on and interest in UK remortgages, many lending institutions have taken the lead and are making more remortgage offers available, including those set at tracker, variable, fixed, and capped rates.
Due to the plethora of UK remortgage offers available and the specifics of each UK remortgage, it is most likely best to start your research by consulting a neutral mortgage broker, one not employed by a specific lending institution. From this mortgage broker you will figure out what the best plans for you are. Once you have decided on a lender, you may then want to work with a UK remortgage adviser employed by that lender. This mortgage adviser will know the ins and outs of every mortgage offered by the lender.
Remortgage advice, as with most areas of financial advice, is governed by the FSA, and as a consequence, the mortgage broker is required to give impartial advice. They can give quotes but they can't recommend a particular mortgage. That is for you to decide. In addition, the mortgage agent should tell you if he (is) working for a particular company and is limited in the range of quotes he could advise on, according to Richard Pettinger, writer on the UK housing market and UK mortgages. So, in effect, if the adviser works for a specific company and can only advise on certain mortgages, you are getting biased advice. The one upside of this is that the adviser would receive a commission from the lender that they work for, meaning that their advice will be cheaper.
It is of utmost importance that you understand the early repayment penalties on your current mortgage and any fees involved in your new UK remortgage. If it transpires that you would be charged massive penalties (on top of the remortgage arrangement fee) for moving, it might be more financially beneficial to wait until your current mortgage tie-in period has come to an end.
If, however, a UK remortgage will lower your monthly payments, even considering the penalties and fees, there is another possible advantage: debt consolidation. Due to rising property prices, your home may be worth more now than before, allowing you to take advantage of the extra available equity and take out a larger UK remortgage. You would be able to use the extra borrowed money to pay off other loans where you are being charged high interest rates, such as debts from credit cards.