The reasons people choose to remortgage generally fall into two categories: to get a better deal or to raise funds from the equity in their property.
The interest rate you are initially offered will depend on the loan-to-value (LTV) ratio. The higher the LTV, the more you can expect to pay. As you pay down your mortgage, and the value of your property rises, the LTV changes. There’s a tipping point when you enter a lower category, meaning you might well be able to get a better deal by remortgaging to pay less interest on the loan.
Alternatively, you might be on a fixed-rate or other mortgage deal that is coming to an end and want to get a better deal than the standard variable rate (SVR) mortgage your current lender offers.
Remortgaging can also release equity that has built up in the property, meaning you can raise funds for home improvements, large purchases, or even to consolidate other debts.