Remortgaging is a very good option if you are stuck with a bad fixed mortgage plan, and want to move on to something cheaper and more productive. But it is wise to remember that your money lender might charge you a fee for changing to a different remortgage rate. You should calculate which is a cheaper option for you to move onto, and whether it would be more viable in the future, if your current mortgage plan is ending soon, and hence you can find better rates without having to change from your previous rates.
Usually there are two different kinds of remortgage interest rate that are offered by the bank. One is the fixed interest rate that can help you calculate the interest over the years, and hence plan your mortgage according to that. Though this may seem cheaper at first, especially with the lower charges, it may end up being more expensive since the interest rates may drop over the years depending on the value of your house currently. This is more suitable for individuals who like to plan ahead and set aside their mortgage early so that they can be paid over the years.
Then, there are also variable interest rates that fluctuate according to the UK market and hence, they may be cheaper on your pocket. For example, suppose you have a current interest of 5% and there is a cap on the interest rate of about 1%. This means that no matter what kind of changes which may come in the market index of your money lender or your bank, you will never have to pay more than 6% interest on your mortgage. Also, with variable interest rates, you may even get a lower interest rate if the market index shows so. The only drawback here is that the money lender may charge you extra for availing of the cap on the variable interest rate. This can be very beneficial over the years. However, it should be calculated so as not to jeopardise your financial future.
Doing research by looking online and meeting several different kinds of remortgage loan companies will help you find the best deal.