Remortgage help

Benfromengland

Hi can someone help me with how mortgages and remortgages work?

If for example i get a mortgage for 100,000 on a two year fix and pay of 10,000 can i then remortgage for 90,000? And keep doing this until i clear my mortgage?

Thanks

chunkytfg

Yes. a Mortgage will be for a fixed period of say 25 years and as the time goes along the amount you owe goes down.

After say 2 years with the interest fixed for a set rate you either do nothing and the Mortgage reverts to the Standard Variable bank rate which will be higher or you can 'remortgage'.

This means you take out another mortgage that could be with a completely different bank for the remaining amount left of say 90k as per your example with the remaining 23 years with a new interest rate fixed for whatever you can get.

Alternatively the Bank you're with for the initial mortgage will allow you to sign up for a new deal period with the existing mortgage.