A remortgage has now been proven by thousands of UK home owners to be possibly the best decision which can currently be made to alleviate strain on the household budget. The mortgage lending product sat back in obscurity for many years and was a second and even third option to saving money. Now, it seems many have discovered the advantages and they are not hesitating to apply and find potential relief. There is now however, the question of whether or not to take a higher interest rate with the deal instead of paying the high additional fees attached with a low rate deal.

House owners are seeking relief from the stress and strain of a tight budget in any form possible. One of the more popular methods to stretch a pound and make it last longer is a home remortgage. With inflation eating up more cash and wage growth stalling, many have found a sanctuary in remortgage and are not looking back. Some home owners are saving hundreds per month on the cost of the monthly mortgage payment.

An average fixed rate mortgage fee is around £1,000, according to the latest data from Moneyfacts. It is easy for lenders as well as borrowers to focus only on low interest rates now instead of the whole picture. Paying additional fees could make a dent in the amount of realised savings in the long run and make choosing a higher rate with lower fees more advantageous.

Charlotte Nelson of Moneyfacts commented on how borrowers need to consider the whole picture before choosing a new deal, saying: "Those savvy borrowers heeding the advice to remortgage could find that moving deals can be a costly affair, especially if their preference is for shorter-term fixed rates. Therefore, with fees on the rise, it is more important than ever for borrowers to consider the true cost of a mortgage before obtaining a deal.”

Nelson added: "Deals with larger fees often allow you to add the fee to the mortgage advance, however, this increases the amount borrowed, pushing up monthly repayments.

"The extra saved by opting for a deal with no fee could be better used to overpay the mortgage, which could help borrowers become mortgage-free quicker."