A remortgage is when a homeowner changes his mortgage from one mortgage lender to another for a variety of reasons.

Someotimes it is simply to obtain a better rate of interest to simply save money on a monthly basis.

At other times the homeowner wants to raise money for a variety of reasons, and these purposes are many fold.

A remortgage is for example an excellent way of arranging debt consolidation. This is when an individual has a number of debts in credit cards, personal loans, hire purchase, etc.and wishes to combine these debts into one much lower monthly repayment.

With remortgage rates starting at present at less thn 2% APR it is apparent how much can be saved by using a remortgage for debt consolidation.

Credit cards have a minimum interest rate of 20% alhough many are much higher than this at in excess of 40%.

Home improvement loans if arranged by the home improvement company have rates at about 25%, and so debt consolidation via a remortgages affords enormous savings.

Remortgages can also be taken out to buy a car, motor home, caravan,boat ,motorbike, etc. etc.

A remortgage can release equity to fund a holiday, a wedding, etc. etc.

The bottom line in fact is remortgages can be used for almost any legitimate purpose.

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