Remortgaging to save money: The five steps you need to take

Mortgage rates remain at a record low - offering homeowners the chance to save significant sums on their monthly payments by remortgaging.

With the Bank of England unlikely to raise the UK Bank Rate anytime soon following a unanimous decision by the Monetary Policy Committee (MPC) to keep it at 0.5%, these rates are expected to continue.

So how can homeowners access these potential savings? Here's the five things you need to do to make sure you get the best deal.

1) Check the value of your property

It may have increased in value since you last checked. The higher the property value in relation to the mortgage, the more deals may be available to you if you decide to remortgage – and you may be able to get cheaper deals.

2) Check the market for mortgage deals

This is your starting point for comparing what you’re paying now with what you might be able to get elsewhere.

3) Make sure it's in your benefit to switch

Even though there may be lower rates available you need to take into account any fees associated with switching and the remaining length of your loan.

4) Take what you've found to a mortgage broker

They have access to mortgages that aren’t available on comparison sites so may be able to improve on what you’ve found. They’ll also double check the costs and benefits of switching. Ask for an advised service.

5) Review each year

If you remortgage you may get an introductory deal on your interest rate – when this ends you’ll usually be put on a less competitive variable rate.

Independent mortgage advice