Most experts agree the base rate will increase by early next year, possibly making it a perfect time to remortgage with a fixed rate. The base rate is expected to be left alone at 0.5 per cent when the Monetary Policy Committee meets tomorrow. It wont be long though, before an increase is imminent. An increase of up to 7.5 per cent is the figure which is being thrown around right now.

So, that leaves homeowners the choice of looking at a fixed rate, which are lower than low right now; or consider a variable rate. There are good deals all over the place for either of them. One of the big concerns is early redemption charges for ending the term of a mortgage before the term is complete.

The benefit of going with a fixed rate is easy - more ease in budgeting and help in financial planning. Also, there is no chance of payment shock when the rates start to rise. Obtaining a standard variable rate loan now would be much riskier, as the rate, and then monthly payment, will both be increasing in the months just ahead.

There are fees involved with a mortgage or remortgage, whichever is chosen. With a mortgage there will be appraisal fees and arrangement fees. With a remortgage there will be those fees, plus fees related to early redemption. Because of the fees involved, checking to see what is possible with the current lender, is the best idea.

Research is important when considering a new loan product, especially with how many different lenders are out there, with numerous deals to offer.

It is also important to check the small print of any document that ends up being signed. Small fees could be hidden or additional charges mentioned, that are not obvious and are not made aware of in general discussion.