A moving experience

Looking for a mortgage when you're not even moving house might seem like unnecessary, self-inflicted pain. I still bristle with irritation at the thought of all the bratty estate agents and treks to see dismal, over-priced flats. And every time I shook hands with someone there seemed to be a ?100 administration fee.

But more and more people are considering the advantages of moving their mortgages without moving house. It isn't particularly difficult to change mortgage company and there may be substantial savings, so it's worth bracing yourself for another journey into the mortgage jungle.

According to the Council of Mortgage Lenders, the increase in numbers of people swapping lenders is down to two factors. First, people are much more confident about looking for a better deal and less likely to sit in polite silence with an over-priced mortgage over 25 years.

And, second, competition for new customers has become tighter, pushing mortgage lenders into looking at markets beyond the traditional first-time buyers and home-movers. Now mortgage companies are casting their covetous eyes upon rivals' customers.

If you don't relish the prospect of beginning mortgage hunting again, I have to say that it's an entirely different experience when detached from the hassles of moving home.

When you're buying a house, looking for a mortgage is part of a long checklist of complications and anxieties. Your life is temporarily put on hold and everything is in upheaval. But despite the complexities of the variety of deals on offer, looking for a new mortgage when there are no pressures to move is, relatively speaking, more straightforward.

All the cards are in your hands. You have a mortgage worth thousands of pounds in interest every year and it's up to the lenders to offer you the best deal. It's in the interests of mortgage lenders to make the transfer simple and there shouldn't be too many difficulties. There are costs, such as legal and valuation fees, but there are deals to cover this. Cheltenham and Gloucester and the Halifax will pay the costs of transferring a mortgage to them.

Apart from the canniest borrowers, who have already chased the lowest possible rates, most mortgage holders will be likely to find a lower monthly repayment if they shop around. If you signed up for a fixed-rate mortgage when rates were much higher, you'll be able to save money by transferring to a variable rate. Scarborough Direct is offering 5.85%.

It's likely that there will be penalties for leaving a fixed-rate mortgage within a set number of years, so you'll have to get out the calculator and see how what you would save compares with the cost of paying off any penalties.

Similarly, with some types of cashback mortgages you'll be paying above the variable rate, with penalties attached to an early redemption. However, if you don't have the cash to pay these off you could add them to your mortgage - it might mean you pay less each month, even though the total value of the mortgage is larger.

If you're already on a variable rate, you might consider discounted mortgages, in which rates are pegged for a set number of years below the variable rate. For instance, the West Bromwich Building Society is currently offering a discounted rate at 4.45% and the Scarborough Building Society is offering 4.2%.

These rates will rise or fall with the variable rate, but if you want a fixed rate, there are deals specifically aimed at re-mortgages. For example, the Halifax offers a fixed rate of 5.25%, which will run until July 2004.

One option is a "capped" rate, which fixes an upper limit for rates, but allows borrowers to gain from any further fall in interest rates. Bristol & West has a capped mortgage at 4.79% for the next two years, with a three year tie-in period to follow.

Rather than chasing the lowest monthly repayment, you might prefer a mortgage with no tie-ins or conditions, even though the rate might be slightly higher. The Halifax has a discounted mortgage with no penalties attached, currently at 5.4%.

Another option might be a "flexible" mortgage, in which you can vary the amounts you pay into the mortgage account, raising the prospect of saving a small fortune in interest if you can pay more than the monthly minimum.

A great advantage of looking for a mortgage after you've moved is that you can consider your options in a much more realistic way. In the middle of a house move it's hard to imagine five months ahead, let alone five years.

It may be that your current mortgage is as good as anything on offer, but it's worth taking the time to step back and consider your options. And if you can find a way of paying less each month, think of that saving stretching over the next 20 years.