A mortgage refers to borrowing funds to purchase a property, while a remortgage involves switching an existing loan to a new deal. Whether one is cheaper depends on interest rates, fees and timing. Remortgaging can reduce monthly payments if a lower rate is secured, but arrangement fees and legal costs must be included in the calculation.
Simply comparing interest rates does not provide the full picture. The total cost over the fixed or introductory period gives a more accurate comparison. In some cases, staying with your existing lender through a product transfer may offer better value.
Reviewing your options several months before your deal ends provides more flexibility and helps avoid being moved onto a higher standard variable rate.
We compare your options in our main Remortgaging guide.
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.