How does remortgaging work?

Remortgaging means switching your current mortgage to a new deal, either with your existing lender or a new one. Most people remortgage when their fixed or tracker rate is ending. If you do nothing, you usually move onto a higher standard variable rate. The process involves reviewing your balance, property value, income and credit history. A lender assesses affordability and may carry out a valuation. Once approved, the new mortgage repays the old one. Some people also raise extra funds at the same time. Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.