Whether you’ve reached the end of your current mortgage deal or a better rate has seduced you into switching, it’s a big decision to re-mortgage. Re-mortgaging is going to affect your finances and its best to do your research to ensure that it changes them for the better.

Don’t be duped by low interest rates; these are appealing and no one would blame you for being tempted. However you need to be sure that after lending fees and the possibility of having to pay an early repayment fee that it is still worth switching and you’ll be better off for doing so.

Although you’ve already had a mortgage you still have to do your research when re-mortgaging. You have a choice of four different types and one is sure to suit your circumstance and requirements,

Fixed rate mortgages
Fixed rate mortgages are a popular choice; they offer the security of knowing what your budget will be for a fixed time period of between two to five years. This means despite fluctuations in interest rates your payments stay at the level you can afford and you’ll get no surprise increase until the end of the agreed fixed period.

However depending on your situation a fixed rate may not be what you’re looking for. If a job promotion leading to a house move is a possibility, being tied into a mortgage for five years wouldn’t be a wise decision. If you wanted to leave a fixed rate mortgage early you might have to pay expensive early repayment fees.

Capped Mortgages
This is another appealing mortgage type; it gives you the advantage of being able to budget to the maximum you can afford to pay, but having the advantage of paying less when the interest rate drops. It combines the best bits of a fixed and variable mortgages combined.

And if this isn’t the mortgage for you then this discounted one could be perfect, but this ones appealing attribute doesn’t last forever, so think carefully.
Discounted Mortgages

This is a mortgage with a discounted rate over a fixed period of time. Which means it’s a great mortgage for the period of time its agreed, so in the first few years it’ll be bliss.

Fourthly, and finally, this mortgage isn’t fixed or tied into a deal for any period of time. Its flexible and some people may find this type of mortgage attractive during periods of falling interest rates. Because of the credit crunch that’s looming, some lenders are more cautious about lending, but with the falling rates the variable rate mortgage is looking good.

Variable rate mortgages
This mortgage would give you the flexibility to pay less or more depending on the standard variable rate. When interest rates rise you will have to pay more than you would with a fixed rate, but then when the tables turn and interest rates drops with this mortgage you will be paying more than those on a fixed rate.

This mortgage is a gamble and although interest rates are dropping right now, like all gambles you might be worse off in the long run if rates rose dramatically.

The key thing to take into account when re-mortgaging your home is to research the market and hunt for the lender with the right deal for you, but remember to take into account all the costs you’ll accrue after all the formalities. Choose a mortgage that will not only benefit you in the short term but also in the future and try not to overstretch your finances because your home will be put in jeopardy if you don’t keep up your re-payments.

For More information about fixed rate mortgage, re-mortgage & re-mortgaging please visit: http://www.stirlingmortgages.com