What Does Remortgage Mean?


What does the word remortgage mean to you? Is it a bad word, does it have a negative impression? For me this answer is easy (but that’s because I am in the industry…I’m a mortgage broker), but for ‘Joe Public’, I’m not so sure anymore and here’s why!

What does remortgage mean to you?

Like I said when someone asked me if a remortgage was bad, I was surprised by the question, but it was easy for me to answer. It is a positive and a really good thing to do. In fact, I don’t understand why it would be perceived as bad or why people wouldn’t remortgage…it makes no sense!

I could list countless reasons why it's good to remortgage and bore you to death, but I won't hear, so don't worry!

But when we listened to what some people were saying and asked for their impression, I was certainly shocked!

For some there is a negative impression of the word! For some people they assumed people only remortgage when they are in financial distress, are desperate, maybe need more money, or something else negative.

It was rarely described in a positive light…and for me that was a shock! And a little sad if I’m honest.

Why is the word Remortgage perceived as a bad thing?

So why do some people have a negative impression? To be honest (and it's probably because we, like you, live and work in our bubble) I don’t really know!

It could be because their is a lack of financial education, and this is not to blame those people who think this way.I blame ourselves and the industry for not educating clients.

Okay, I know remortgage advice and mortgage education isn't on most people's agendas, but you get my point, it's quite important.

Okay, I know remortgage advice and mortgage education isn’t on most people's agendas, but you get my point, its quite important and we all need to play our part.

We also know their has never been any financial real world education, although I hear the schools are now doing this which is amazing (I would love to support any schools who need help…so reach out to me). So as professionals in our industry how can we expect you to know? We shouldn’t…and that’s our fault.

Why are some people wrong when it comes to a remortgage?

There are of course many reasons why people remortgage and yes some may be related to negative things, whether that’s a separation and one partner buying out the other, financial hardship, or something else a bit rubbish!

Even if the s.h.1.t happens! The act of doing a remortgage should only result in a positive result.

As we know life can throw a few curve balls!

But even if the s.h.1.t happens! The act of doing a remortgage should only result in a positive result. It either helps fix a problem or allows you to move forward.

You know what, I said I wasn’t going to outline some benefits, but I’ve changed my mind!

Why the word remortgage is unfairly perceived…


For most people when they get a mortgage they usually sign up for a deal for a set period of time i.e a 2 year fixed rate. Of course, at the end of this time, their mortgage doesn’t stop.

They just revert onto the lender's (usually higher) SVR interest rate. SVR means standard variable rate, and the very meaning of the word variable means it moves at any time.

So for those who like the security of budgeting and being on a fixed rate for the security of knowing exactly what your mortgage costs are, being on the SVR is the worst possible thing…unless there is a good reason to be on it (if you want to know why to reach out to me and I’ll tell you).

The other big huge positive of a remortgage is rather than going onto the SVR, you can switch deals either to another lender or your own lender may have options available to you.


There are tons more really positive reasons…and for me, I was really shocked to see how this poor little word was being misrepresented…come on, someone has to stand up for the poor thing!

Wow I got a remortgage!

Hey, listen I know it's good to moan, have a grumble and get things off our chest to people. It makes us feel better right?

But come on peeps, we all have a responsibility to be more positive, talk up things that help us out, share our knowledge and experiences.

And I know…you are unlikely to tell friends; wow I just got an awesome remortgage how exciting but maybe we can just start by thinking of it as a positive thing.

If you want to find out more about a remortgage or need help working out your options, get in touch with our amazing team.

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