Smarter Remortgaging

Want to clear your mortgage debt more quickly? Here's how.

What's the most expensive thing you're likely to buy in your lifetime? The vast majority of people are, of course, going to say buying a home -- my house is certainly the most expensive thing I've ever bought and I still haven't finished paying for it yet.At a rough guess, I reckon that over the last two decades I've paid my lender well over £100,000 towards the cost of my initial mortgage of less than half that all those years ago. But it would have been a darn sight more if I hadn't caught on to the art of rate-tarting and overpaying.Every couple of years I ring up my lender and ask if they've got any good deals around that I could switch to (I like discounted rates with no redemption penalties). I've done this three times now and every time the answer has been yes. And every time, even though my monthly repayments have gone down, I've carried on paying the same as before.And that's the key when switching to a better rate -- it's keeping your monthly repayments the same and sticking to the original term of the mortgage even when you're borrowing a bit extra.After all, I've been able to afford those monthly repayments before and my aim is simply to borrow the money more cheaply -- not to reduce the amount I'm handing over to my mortgage lender each month. That way more of my money is going towards paying off the capital which means my mortgage will be paid off sooner than anticipated. Hurrah!Of course, I'm lucky that my lender has been willing to offer me a better deal whenever I've asked. Otherwise I would have switched lenders. It's not difficult to do and if you don't fancy doing the legwork yourself, go for a no-fee mortgage broker, such as Fool Partner London & Country Mortgages who will search the market for you and handle all the paperwork.Opting for a lower interest rate will free up money to overpay. London & Country point out that a borrower with a £100,000 mortgage on a rate of 4.75% could save £11,396 over the life of the loan by making overpayments of just £50 a month. The term of the mortgage would also fall from 25 to 21.5 years.Admittedly, you have to remember that there are usually some costs involved with switching a mortgage - legal and valuation fees for example -- and you need to take these into account. However, many lenders will pay these fees for you in an effort to get your custom. And let's face it, if you can save thousands and get shot of your mortgage sooner, surely it's a no brainer.> Check out the latest deals in our mortgage centre.