One of the primary reasons people remortgage their homes and properties is to reduce their monthly repayments. There may be certain fees that you are liable for when switching lenders or mortgage products, such as early redemption penalties. If you're sure that these fees won't be overbearing (and the quickest way to find out what you would be paying in fees is to phone your lender), then it is possible to save a good deal of money over the loan period of your mortgage.
As an example of what you could save, say you have a 25 year mortgage of £100,000. If you are paying your mortgage lender's Standard Variable Rate of 7.5 percent, your monthly repayments will be around £735.
If you were to switch to a new 25-year tracker mortgage (where the interest rate tracks the Bank of England Base Rate) that is currently charging 5%, your repayments would fall to around £580 per month. At this rate of interest, over the course of a single year you could potentially save £1800 in mortgage repayments, which is a huge saving by anyone's standards.
