Although you may not be thinking about remortgaging your home while you're in the middle of deciding on a mortgage you should be aware that one of the biggest potential costs of remortgaging comes from redemption penalties. You will incur penalties if you decide to switch from your current mortgage to a different lender in order to get a better deal before the end of a specific period.
If you decide to switch lenders while you are still in introductory offer period of a mortgage (with a capped or fixed rate) you will probably have to pay 'early redemption' penalties which can be quite severe. Some lenders even charge early redemption penalties after the introductory period has expired. These penalties are variously known as 'overhands' or 'overlapping penalties'. You need to check your mortgage offer carefully, however, as not all lenders charge them.
