Why has remortgaging suddenly become so popular

A.� Because for the right people there are big savings to be made. The days of taking what you were offered and thanking the bank manager or insurance company very much have long gone.

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A combination of the lowest interest rates for decades, recently cut again in light of the economic downturn, and fierce competition between the established lenders and the new breed of mortgage companies means the deals available are some of the most competitive ever, some as low as 4.5 per cent or less. Those with existing mortgages are finding they can save hundreds if not thousands of pounds by shopping around for a better deal.

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A.� The number of people remortgaging in the UK has trebled in the past three years and a recent survey by a independent financial adviser that nearly a third of home owners - 12 million of us - are losing out to the tune of around �1,000 by not switching lender. But not everyone can benefit.

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A.� Many people are tied in to fixed-rate mortgages that have early redemption penalties. These penalties often make it prohibitively expensive to move your mortgage elsewhere, and in some cases there are penalties to be paid long after the fixed rate period has finished. In these circumstances it is only worth switching if the loan is so big that paying the penalties still mean you save money in the long term.

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A.� It is estimated that a sizeable proportion of those who haven't switched despite potential savings are put off because they believe remortgaging will be a protracted, complicated and even expensive process. However, the reality is that it generally a pretty simple procedure, little more than a few hours form filling.

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A.� If your home is worth more than it was when you paid for it, which is more than often the case given the current property market, you can use the spare capital (equity) you have built up you could borrow against it to pay off other more expensive debts like credit cards, overdrafts or personal loans.

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Although you are taking out a bigger loan on your property, by having the capital to pay off debts at much higher rates of interest you could save a considerable amount of money.

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A.� First check the terms of your existing mortgage for things like early redemption penalties, arrangement and legal fees etc to make sure it is worth your while. If you believe it is worth proceeding there are plenty of independent mortgage advisors around or you can compare different deals against your current one using as number of websites including www.moneyfacts.co.uk and Charcoal online at www.freeserve.com.

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