Published at 14:04, Friday, 13 April 2012

We are all trying to make our money go further in these difficult economic times, and as mortgages are, for many of us, our single biggest monthly expense, they should be the first area to be considered when we review our outgoings.

Remember though, you don’t have to be moving home to move your mortgage.

If you’re coming to the end of your current deal and looking around to see what else is on offer, or if you have some equity in your home – at least 25 per cent of its value is best – and a good payment history, then you may well be able to secure one of the best deals currently available.

As a starting point you need to know what you are paying at the moment, not just the amount but the interest rate you are being charged as well. If you’re not sure, then take time to check with your current lender. Make sure you know how long your current deal has left to run and whether there are any costs to switch.

Now you can start doing some work of your own. Have a look at some lenders’ websites and press advertising to get an idea of the different rates on offer. It is always a good idea to consider lenders who have a branch in your area, so that you can talk to them face-to-face should you ever need to. You may also sound out some of your friends who you know have recently taken on a new mortgage.

Do keep in mind that on some of the so called “Best Buy‘ deals, arrangement/product fees can be well in excess of £1,000, so this must be considered in terms of the overall cost.

For a lot of remortgage deals, you should not have to pay any valuation or legal costs to transfer your mortgage to the new lender. However, this is not always the case and is worth checking at an early stage, as this could mean some additional outlay. To judge whether remortgaging is worthwhile, compare the costs with the savings – but do keep in mind that the costs may well be payable upfront while the savings will be made over a much longer period of time.

It’s at this point that the time will be right to speak to a number of the lenders to see what deal is best for you. Many people give up on the process at this point as they remember the hassle of buying their house. Remortgaging is so much simpler. Once you’ve booked your appointment, take your last few payslips, bank statements and ID with you and you should be in and out of the office within an hour or so. If you do decide to go ahead and change lenders, then your new lender should look after the whole process for you without difficulty.

The Cumberland offers a hassle-free remortgage service. For details please call into your local branch or visit www.cumberland.co.uk.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Published by http://www.cumberlandnews.co.uk