Remortgaging is when you change your mortgage company. This is something that people do for a selection of reasons. They may decide that they want to increase the amount that they are borrowing, they may want to move to get a better rate, it could be that they want a more flexible mortgage or they no longer like their lender. It is important to think carefully before remortgaging though.
You need to consider how expensive it might be to change your lender. It may just seem that changing will be cheaper because of the better interest rate or you may just want to move to a better lender. However, if you move your lender you may find that you have high charges. They are normally administration fees when you end a mortgage and when you start a new one and these can really add up. They can vary from a few hundred pounds to a few thousand and so you need to find out what they are because you may find that they are so much, that you do not want to change companies after all.
You also need to think hard if you are borrowing more money on your mortgage. It may seem like a good idea, if you want to borrow money and you have some equity that you can use. However, you need to consider whether this is the cheapest option. Although interest rates on mortgages tend to be lower than other loans, they are usually for a longer term. This means that you may end up paying out more money if you borrow at a low percent for a longer time than at a higher one for a short term. Make sure that you do the maths and work out which will be the best option for you.
If you want a more flexible mortgage it could be worth talking to current lender. Explain what your needs are and they may be able to help you. This could save you the cost of changing mortgages as they may be able to adapt the one you have. If you are a good repayer, they are more likely to want to hold on to you and therefore help you.
If you do not like your lender any more, then this can be a good reason for switching. However, again consider the costs and decide whether it is worth it. You could end up paying thousands and it is a lot to spend just to move to someone else. You will need to decide whether what they have done to upset you, is worth the cost and hassle of changing lenders.