Remortgaging explained

We hope this information offers you a few tips on making the right remortgaging decision.

Choosing the right type of mortgage

Fixed-rate mortgages can help you with future budgeting.

Choose a variable rate tracker mortgage, and your interest rate will be set just above the Bank of England Base Rate for the agreed period. If the Bank of England Base Rate rises, your monthly repayments will increase too – leaving you with less money each month.

However, if the Bank of England Base Rate goes down, so will your monthly repayments. And that means you could enjoy having spare funds.

The winners and losers

The lending market will always fluctuate, in keeping with changing house prices. Over recent years, interest rates have dropped and mortgage deals have become more desirable. But in years to come, the rates could rise and the competitive deals dry up. So should you take advantage now?

If you've a variable rate loan of over £30,000 and no early repayment charges, see if NatWest can offer you a better deal on your mortgage. Even if your current home loan does have an early repayment charge, you may still find that the gains outweigh any costs incurred.

On the other hand, if your home loan is below £25,000, it would be a good idea to check up first on fees that you might have to pay when you remortgage. You could find that the savings you make on your new home loan are actually less than the cost of the fees required to move.

Finally, if you've recently moved jobs - or you've become self-employed - you may find that mortgage lenders are a little more hesitant in offering you a remortgage deal. Understandably, we need to know that you can repay what you borrow, and a proven track record of your income will help convince us!

• Find out about NatWest's remortgage options