Basically, a remortgageis a type of mortgage that takes an existing home loan or mortgage and replaces it with a new mortgage from a new financial institution or lender. This new lender repays the already existing mortgage debt and the borrower pays off the new loan to the new lender. A remortgage is different from a refinance-type of loan because a remortgage is specifically from a new lender, whereas a refinance loan could possibly be from the lender of the existing loan.
A remortgage is great for people who want to find a lower interest rate. Doing this could reduce a person's monthly payments by quite a bit. If people have a lower monthly payment, they may then be able to pay off the home loan faster than with the original rate.
Another great benefit to investing in a remortgage is that it may free up or release some equity. Equity is the difference between the market value of the property and the amount owed on this real estate. Equity can be earned when you invest in a remortgage and then borrow in excess to the current debt.