Question: Why Remortgage?

Answer: Because it's an excellent way to escape high variable or fixed interest rates and save money.

• If you remortgage can take advantage of some of the current fixed-rate or discount mortgages which will have much lower rates

• You can also remortgage to raise funds for other uses

• Remortgaging can also be an excellent idea if you are on a variable-rate mortgage and think rates will rise over the future. Remortgage to take out a fixed-rate deal in this case

Associated Costs with Remortgaging

• Firstly it always costs money, so always shop around as there are always deals to be had

• Normal expenses include, arrangements and admin fees, normally around £150-£300

• A mortgage valuation fee of between £150-£300 depending on the value of your property

• A possible early redemption penalty on your present mortgage. Depends from lender to lender but is normally around 3-6 months of additional interest payments

• Solicitor's, Land Registry and local search fees are normally levied

• A Mortgage Indemnity Guarantee (MIG) is normally payable if you borrow more than 75% of the property's value often referred to as the ‘loan to value' or LTV

Take The Remortgage Test

Take this simple test to see if remortgaging is right for you

1. Write to your present mortgage company and ask for a written redemption statement. This will show your total outstanding balance and will clearly set out the penalties (if any) and fees that will be associated for redeeming the mortgage

2. Investigate what legal fees and other assorted costs will be. You MUST shop around because these can vary greatly