Cash in on base rate cut

FIVE-MINUTE GUIDE TO... REMORTGAGING

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MORTGAGE rates have been getting steadily cheaper and last Thursday's Bank of England base rate cut to 3.75% should make them cheaper still, reversing much of the pain homeowners have endured over the last three years.

This could be a rare chance to remortgage to a more competitive deal and cut monthly repayments, but many people still aren't sure how to go about it.

Remortgaging can pay off, but there's paperwork, fine print and potential costs to weigh up, plus some important pitfalls to avoid.

Tracker mortgages are directly pegged to the base rate, so they should fall in line with any cut. Halifax currently offers a two-year tracker at 0.11% above base rate, which will now fall to 3.86%.