Remortgaging is not just about saving money. Your timing and personal circumstances have to be taken into account to decide if the savings available at the point you’re considering remortgaging will outweigh the associated costs. Here are the most important things to consider.

• Don’t forget the fees. Your current lender may charge you an exit fee and there is also other fees to consider for the new mortgage, such as arrangement fee, valuation fee, legal costs. You can add some of these costs to your mortgage but remember that’s more expensive long term as you’ll be paying interest on the money for the duration of the mortgage loan. It is best to do some sums to take into account the full costs of remortgaging.
• Early repayment charges. If you are currently in a fixed rate deal, you will have to pay your lender an early repayment charge if you wish to leave before the end of the deal. If the early repayment charge are very high it may turn out to be more expensive to move before the end of the incentive period. So it’s definitely worth making some calculations.
• You may not necessarily be accepted by another lender. If your financial or employment situation has changed since you first got your mortgage, you may no longer fit the criteria for a new mortgage with another lender so it may be better for you to stay where you are.
• If you are raising extra capital with your remortgage, you will be increasing the amount you are borrowing and will therefore see a rise in your monthly repayments. You need to work this out carefully. Mortgages may have lower interest rates in comparison to credit cards or loans for example but borrowing over a long period of time may cost a lot more in the long run.