Re-mortgaging is an ideal solution if you are paying over the odds; it is easy, cheap and hassle free. Here you will find RE-MORTGAGE has provided a step-by-step guide to the re-mortgage process.

Step one: Dig out the details of your current mortgage. What type of deal do you have? If it is:

· Variable - you can remortgage to a better deal straight away

· Flexible - truly flexible mortgages allow you to leave when you want to with no penalty - but in many cases it will make sense to stick with a flexible mortgage.

· Variable with a cash back - you may have to repay the value of the cash back before you are allowed to switch mortgages.

· Variable with a discount, fixed rate or capped rate - you may have to pay a redemption penalty to switch deals.

· Base Rate Tracker - you should be able to remortgage to a different deal straightaway.

Step two: Research the market for a cheaper mortgage and decide which type of mortgage deal you want to switch to. You must ask yourself:

· Do you want the security offered by a fixed rate, where you will know exactly how much your monthly repayments will be? Or if you are looking for the security of guaranteed maximum monthly payments for a given period with the opportunity for lower monthly payments should variable rates fall, a capped rate mortgage may be of interest.

· Are you looking for lower monthly payments in the short term? If so you will want to consider a discounted rate or possibly a short-term fixed rate.

· Do you want the opportunity to pay off your mortgage as quickly as possible and save money in future interest payments? If so, shop around for a flexible mortgage.

· Are you confident enough to run all your finances through the same account for maximum financial efficiency? Then you should investigate current account and offset mortgages.

· Do you want a variable rate mortgage were the wider economy rather than the mortgage lender determines the rate paid? Then go for a base rate tracker.

Step three: make a note of

· Your current monthly repayments
· The monthly repayment cost of the new deal you have selected

Get in touch with your lender and:

· Ask them to work out how much you will have to pay in redemption penalties (If applicable)
· Inform them that you are considering re-mortgaging. They may be able to offer you a new deal to stay with them - for example by switching you on to another fixed rate with no penalties. But still make sure you shop around as you could find something even more suitable.

Step four: Work out how much it will cost you to remortgage. Write down how much the following will cost:

· Redemption penalties (if applicable)
· Arrangement fees (if applicable)
· Valuation fees
· Legal fees

Weigh up your savings versus your costs. Bear in mind that some lenders offer specific remortgage packages where they pay for your legal and valuation fees, so all you need to do is compare monthly repayment costs (unless there are redemption penalties involved). Ideally, remortgaging should save you money straightaway, but if there are costs involved it may take a number of months to recoup your layout.