Many people are unsure about what a remortgage really means or what advantages there is in remortgages..

Before moving on to remortgages we should first of all consider what a mortgage is. Mortgage are the loans that close to 100% of those wanting to buy a bought home require and these are both those moving from one property to another and also people buying their first home.

The only alternative to taking out a mortgage is to pay cash up front but only a tiny number of people have that sum of cash at their disposal..

Mortgages always have a tie in period which is a period during which the original monthly payment holds and can last from one year to generally five years although this can be longer and there is at the moment a tracker product which lasts forever..

In the course of this a homeowner would incur a costly early repayment penalty if the mortgage was redeemed early..

This cahrge penalty clearing off a mortgage is expensive being from 2% of the mortgage balance remaining to as high as 5% depending on mortgage lender and therefore to settle a mortgage during the tie inn period would be silly.

Once the tie in period has ended there are no early settlement charges due and it is then that a homeowner should think about obtaining remortgage quotations from lenders other than his own one to see if there are cheaper interest rates available.

A remortgage is beneficial as it saves money by moving from one lender to another.

Moving from one provider to another is what is called a remortgage.

Considerable sums of money can be saved by taking out a remortgage as interest rates can vary greatly from one mortgage lender to another and a remortgage arranged with a different bank or building society can have a much lower rate of interest than the Standard Variable Rate of the current lender, and as such it is the sensible course of action to obtain different quotations.

Want to find out more about the best rates for remortgages then visit Champion Finance’s site on how to choose the best remortgage: for you.