Leaping into a remortgage? Here's 10 ways to avoid a fall

Remortgage and save a small - or even a large - fortune. That's the mantra home loan firms hit us with from all sides. But will you end up paying less - or flip out of the frying pan into the fire? We've teamed up with Kevin Paterson of Park Row Independent Mortgages to come up with a ten-point plan to remortgage rapture.

1 Decide what you want: Your maximum remortgage is governed by your home's present worth - it is rare to ask for more than 90% of its value.

2 Clarify the basics: Affordability is vital, so ensure a target remortgage is within budget. And are you prepared to forego some short-term flexibility in return for a cheaper rate?

3 Do your research: Start with your current lender - it could have a remortgage deal. Ask friends and colleagues for recommendations. There's a wide variety of deals including fixed rates, discounts, flexible loans and current account mortgages where your banking and borrowing are rolled into one.

4 Decide on your repayment period: Do you want to start again with another 25 years, or should you accelerate the repayments? Lenders may question you if repayments go much beyond your expected retirement date.

5 Pick your lender: Remember headline rate is just one factor - extras such as free legal fees, penalties and the amount the lender is prepared to advance are all vital.

Don't apply to too many - that could harm credit ratings.

6 Obtain an agreement in principle: This will tell you quickly if the lender will accept you and what they will need in the form of supporting documentation.

7 Valuation survey: Unlike a new mortgage, you will not need a survey to satisfy yourself on the home's condition. But a new lender will want a valuation survey. If the home's in bad condition, think again.

8 Legal and other costs: Lawyer bills, valuations and other "arrangement" fees will set you back anything up to around £700.

These can sometimes be bundled into the deal - look for higher interest rates - or you could roll up costs into the loan amount.

9 Bureaucracy: Expect some forms to sign. but most deals involve little paperwork.

10 Completion: Ensure the repayment date each month for your new loan fits in with your old mortgage - otherwise you could end up paying twice for the same period. Lenders usually charge in advance.