When you took out your first mortgage you were probably more concerned about the house than on spending time shopping around for the best deal. If this is the case then now is the best time to review your mortgage to ensure you are not missing out on potential savings. Here is some information to help you find the best mortgage for you:

Step 1. Choosing the type of deal to switch to
Don't just switch to the cheapest deal you see. You need to think first about what type of deal would best suit your circumstances. Think also about any special features you might be interested in, such as flexibility.

Step 2. Choosing how you will repay your mortgage
You can switch mortgages regardless of whether you've got a repayment mortgage or an interest-only mortgage. Most people will continue with the same type of repayment method when they switch. But you can change your repayment method too. For example, some people who have endowment mortgages with a shortfall take the opportunity to switch part or their entire mortgage to a repayment mortgage. It's important that you seek independent advice if you plan to do this. Also, see our explanations and pros and cons of the different ways to repay your mortgage.

Step 3. Find out how much it will cost you to switch from your existing deal
Depending on your current mortgage, your lender may charge you for switching. Ask your lender for a redemption statement. This will tell you how much you still owe on your existing mortgage and what the switching charges are. The types of charges you may come across are:

• Early repayment charge - An early repayment charge (ERC), if one applies, is likely to be the biggest cost of switching. It could amount to several hundreds or thousands of pounds. If the charge is very large, it may not be worthwhile switching as it can wipe out the benefits of paying a lower rate. You're most likely to have an ERC (otherwise known as a redemption penalty) if you're paying a fixed, capped or discounted rate. But some deals tie you in beyond the special deal so it's possible that you may have to pay an ERC even if you're paying the lender's standard rate.
• Interest charges - Some lenders charge interest until the end of the month in which you switch mortgages. To avoid paying interest on two mortgages, instruct your solicitor or licensed conveyancer to arrange the switch to take place at the end of the month.
• Other charges - Most lenders also make charges such as a deeds fee, admin fee, discharge fee or sealing fee. These vary, but on average they usually in the region of €100 to €450, depending on your lender.
  

Step 4. Look at the deals available and the costs of switching to them
You've already worked out how much it'll cost you to switch from your lender. Now you need to work out how much it'll cost to switch to a new one. This will depend on the deal you go for as well as the lender you choose.

Costs you may come across are:

• Valuation fee - Your new lender needs to check that your home is good security for the loan. That means carrying out a valuation to make sure it's worth at least as much as the loan. The lender arranges the valuation but you pay for it. The fee will depend on the lender and the value of your house. But, for a €200,000 property, for example, you can expect to pay roughly between €250 and €450. Having said that, quite a lot of re-mortgage deals refund the valuation fee as an incentive to switch.
• Legal fees - You'll need to appoint a solicitor or licensed conveyancer to handle the switch. This person will also usually act on behalf of the lender to check that you have title to the property and there's no reason why the lenders shouldn't lend on your property. This involves carrying out searches such as a local authority search. You'll be responsible for all the legal fees including the cost of the searches and land registry fees. But some deals will offer a refund of legal fees as an incentive to switch, provided that the switch is a straightforward one. In order to get a full refund, you might have to agree to use one of the solicitors on the lender's panel.
• Higher Lending Charge - If the amount you're borrowing is more than 75% of your property's value, you may have to pay a Higher Lending Charge (HLC).
• Arrangement/booking fees - Most fixed and capped rate deals have a booking and/or arrangement fee. These vary from deal to deal but generally range from €300 to €1,000. Find out more about fees. Some deals now charge a percentage of the amount you borrow - for example 1-1.5%. Watch out for these as the fees can be high.
• Broker fees - If you've used a mortgage broker or independent financial adviser, you might have a fee to pay for their advice.

Step 5. Work out whether it's worth switching
The easiest way to work out whether you'll save money by switching is to use the Which? Mortgage Search. Before you use it to help you work out whether it's worth switching, you need to have the following information to hand:

• your current monthly mortgage payment
• the costs of switching from your existing lender

For each of the deals that match your criteria the Which? Mortgage Search calculates the estimated savings you'd make by switching to them. The savings are calculated over a period selected by you and take into account the costs of switching. The savings figure should not be taken as an exact figure, it simply gives an indication of whether it might be worth switching.

It's also important to remember that the deals with the biggest savings might not necessarily be suitable for you (for example, they may have a long early repayment charge period). You should seek independent mortgage advice before switching to ensure that you switch to a deal that is suitable for your circumstances.

Step 6. Approach your own lender
Before switching to a new lender, contact your existing one and give them a chance to offer you a better deal. Show them details of the deal you're thinking of switching to and then negotiate.

You won't need a new valuation (unless you're borrowing more) or to pay a solicitor if you switch to a deal with the same lender.

Step 7. Look beyond the cost
Don't just focus on the savings you can make. Make sure you take into account the penalties that any new deal you're considering attracts. The cheapest deals often have the highest and longest lasting penalties. You might decide that it's better to make smaller savings but have the flexibility to switch again if you want to.

Step 8. Choosing your term
Make sure you choose the term of your new mortgage according to how long you've already had your mortgage. So, if you're five years into a 25-year mortgage, take your new mortgage over 20 years. If you're borrowing more, you may be tempted to increase your term in order to keep your repayments manageable but you should think carefully before doing this and seek advice as you will end up paying a lot more interest over the term of the mortgage.

Step 9. Seek advice
Our mortgage service allows you to get an idea of whether it's worth switching to a new mortgage or not, and to arm yourself with information about the types of deal available. However, we recommend that you seek independent advice from a broker or independent financial adviser before you choose which mortgage to switch to.