NEED TO KNOW How to remortgage

For many of us, our biggest monthly outgoing is our mortgage, but you could be saving cash

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Remortgaging means switching your mortgage on your home from one lender to another. And while there are many reasons why people do this, the main reason is usually to save money. People often look to remortgage when their current deal is about to end or if they’re on their lender’s standard variable rate.

WHERE TO START

Check what your current lender will offer you; this is called a ‘product transfer’ rather than a remortgage. Next, start researching what other deals are available elsewhere. When you’re comparing deals, remember to factor in costs like arrangement fees. You might consider using a broker to help you find out about your options. For details on where to find one, see page 52 of the remortgage guide at moneysavingexpert.com.

ANY PITFALLS?

It’s vital that you find out about any fees you may need to pay to leave your current lender. You may need to pay an exit fee and, depending on your deal, an early-repayment charge too – and these can be significant. It’s also important to bear in mind that remortgaging won’t be right for everyone, so do thorough research.