Would like some information on how remortgages work, do you have to move mortgage lender in order to get a remortgage. My present mortgage of £52.000 which was taken out in 1994 finishes in 2014 and I was looking to remortgage to buy a holiday home abroad to which we can eventually move to when we retire but don't actually know anything about remortgages or what is involved or indeed if this is even the right way to go about it, so looking for your advice on the matter. Thanks.

Good afternoon Nan,

Well I'm no expert but some of the posters on here are and in fact are very helpful. I'm speaking from the prespective of a person that has remortgaged this year

At the end of your current deal you if you don't seek a new deal usually go onto the lenders SVR (standard variable rate) which can be a % higher than the deal thats ending meaning you monthly payments go up. In an ideal world your current mortgage provider would reward you with a good deal for staying with them. However this, especially now, in the current financuial climate doesn't occur. This leaves you with a choice of staying put and going on to the SVR typically 7% or more or seeking a remortgage with another provider.

However at this point you have to factor in a variety of factors, remortgage amount left, years left and costs for the remortgage like valuation fees and exit fees for leaving your current provider, Some mortgage providers may also seek a reason why you wish to remortgage and base the risk on the reason given. Thae circumstances being very specific to you, still savings can be made and depending on your personal circumstances you can seek a fixed mortgage or maybe a variable rate.

Now this is where a certain amount of risk is involved and you have to weigh up your options carefully. I hope the more expert among us will advise you soon. However In my opinion, even in the current situation remortgages should not be feared, just do your sums carefully and seek the advice of a few whole of market and ideally fee free mortgage brokers. Remember in some cases re-mortgages can be arranged months before you current deal ends as in the current situation good deals don't last long!

Best of luck!

Paul

If you wish to stay with your current lender, you could approach them for a 'further advance'. Give them a call and discuss it with them. That said, before committing youself to anything, get the total cost of your current mortgage plus the cost of the further advance and compare it to the cost of a remortgage to another lender for the new total loan amount - you may find that it is cheaper to remortgage to another lender and raise the money in the process.

An independent mortgage advisor can go through your options with you to help you understand the options available so that you can make an informed choice.