Remortgages and remortgaging is the process that borrowers go through each time their existing deal comes to an end. If you do not remortgage then your loan repayments will revert back to the lenders standard variable rate (SVR).
The second reason that homeowners remortgage is to receive some money. Using some of the equity in their property they can take out another mortgage to release some of the money invested in their property perhaps to fund retirement or to make improvements to their home.
Remortgages work on the same basis as mortgages in that homeowners can opt for a fixed rate, tracker or discounted rate mortgage. If a property owner is looking to remortgage before the current deal they are on has expired they need to take into account the penalties or early repayment charges (ERC) that some lenders charge. It is generally the right decision to remortgage at the end of the current deal or when the penalty charge period has ended.