Everybody wants to pay less for their mortgage and simply by rearranging their existing loan – remortgaging – they probably can. You may want a better rate, more flexibility, more stability or to release equity from your property. Whatever you need, the mortgage market can help and your first port of call should be an adviser who will explain exactly what’s on offer. However remember there’s no such thing as a free lunch and there could be charges associated with remortgaging. Your existing lender may charge a penalty to redeem the loan and there could be legal and valuation fees to pay. The new mortgage may also carry an arrangement fee and you may need to pay your adviser a fee.

The trick, as the Americans say, is to do the maths. Sit down with a pencil and paper and work out exactly how much it’ll cost you to get out of your existing mortgage, and to go ahead and take out a new one. Then look at the amount by which you could reduce your monthly payments with the new mortgage and see how quickly it’ll take to pay off the money you’ve spent. Is it worth it? Your hand may be forced and for the extra flexibility or equity need, and you may not save money, but always be aware and make sure the switch works in your favour.

The big mistake people make with remortgaging is leaving it too late. All of a sudden the old deal they’re on comes to an end and before they’ve sorted out a new mortgage they’re left paying more than they need to. Get everything in place at least six weeks in advance of when you want to remortgage. This gives you time to handle any problems.

Move Angels’ Quick summary

• Be aware that remortgaging costs money and only go ahead once you’ve a clear idea of how much it’ll cost and whether it will actually save you. If it’s not saving you money then why are you doing it? If you can’t answer that question then don’t go ahead.
• Be prepared. Don’t be caught at the past minute fumbling around trying to get things organised. Check when your existing deal runs out and begin to make plans at least six weeks or two months in advance. It’ll be your money that you waste.