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Remortgaging your property

Meet the Browns. Mum, dad and their two children.

They own their own house and they have a mortgage on it. Their home is worth £200,000 and they owe £150,000 on their mortgage.

The Browns are happy with their house but not so happy with their mortgage, as they think they’re paying too much. They’ve been on the standard variable rate ever since their fixed rate mortgage came to an end.

Remortgaging could save the Browns big money if they pick the right deal.

But Mrs Brown knows she has to check any new mortgage really carefully.

First, Mrs Brown asks her current lender if she can switch to a better rate.

She also checks if there were any exit fees to pay and if so, how much they are.

As Mr Brown is getting a pay rise, there will be more money coming in, so Mrs Brown wants a mortgage with some flexibility so they can make extra payments

The Browns aren’t sure what type of mortgage they should switch to.

Should they go for another fixed rate mortgage, so they’ll know exactly what they’re paying every month, or should they choose a tracker rate deal that will rise and fall in line with Bank of England interest rates?

It may start off cheaper than a fixed rate mortgage but will rise if interest rates increase.

Their next step is to compare what other mortgage lenders are offering by looking at price comparison sites, making sure they check how much the fees and charges are as well as looking at the headline interest rates.

The Browns know that these fees can add up to £1,000 or more.

The Browns find several mortgage deals that could save them money, so they decide to talk to an independent mortgage broker who can advise them about the best one for them.

Find out if you could save by remortgaging. For more information, check our website.

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