As homeowners begin to look for ways to consolidate debt or save on monthly mortgage payments, they will at some point consider remortgage. A remortgage can be a very smart move in this economy as interest rates are at historical lows. Before applying for a remortgage there are two important things a homeowner needs to know.

First, a homeowner should know their credit score or credit worthiness. There are agencies that collect data on a person’s credit and payment history. They use the data to give consumers a credit score. Lenders use this score to help them determine the risk of loaning funds to that particular borrower. Not only is it important to know you score but to review the report that is available per credit reporting agency and look for errors.

If your score is particularly low you should consider trying to repair it before applying for a remortgage. A better credit score can save you thousands of pounds in the lifetime of a loan since those with low scores are destined to pay higher interest rates. However, if debt consolidation is a goal or you have another pressing reason to apply while you have a low score, there are remortgage brokers that are experts in working with borrowers that have bad credit.

Second, learn what a remortgage is going to cost you in remortgage fees. If you don’t understand intense rates, then learn. Also, familiarize yourself with what fees various lenders or brokers would charge if you remortgage.

Locating a remortgage expert within a bank or a remortgage broker can benefit you as you do your research about costs associated with the loan. They will be able to discuss the various types of remortgage and explain the associated remortgage costs involved.

Once you have gathered all your information and you are armed with the knowledge of your credit score as well as the cost of a remortgage, you can then explore the benefits of proceeding.

The current base rate is a low 0.5 per cent and lenders are trying to entice borrowers to their remortgage products. Just this past week a majority of lenders dropped interest rates on their fixed rate loans. With loans at historical lows a remortgage is something to definitely consider.