UK finance jargon - in plain English
Switching your existing mortgage to a new deal, either with your current lender or a different one.
Remortgaging means replacing your current mortgage with a new one. The most common reason is that an initial fixed rate deal has ended and you are about to be moved onto the lender's standard variable rate (SVR), which is almost always higher. Remortgaging at the right time can significantly reduce your monthly payments. You can remortgage with your existing lender (a product transfer) or switch to a new lender for a better rate.
Your two-year fixed rate at 4.2% ends next month. Your lender's SVR is 7.5%. By remortgaging to a new two-year fix at 4.6% with a different lender, you avoid a significant jump in monthly payments. The difference on a £200,000 mortgage can be hundreds of pounds a month.
Remortgaging may involve exit fees from your current deal, arrangement fees on the new one, and legal costs. Factor these in before deciding whether switching is worthwhile. Speak to a mortgage broker if you are unsure.
People let their fixed rate expire without acting and drift onto the SVR for months or years, paying far more than necessary. Set a reminder six months before your deal ends so you have time to compare options.