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Remortgaging is most often undertaken to save money. Homeowners able to remortgage or buy with 40 percent equity or deposit are being offered lower mortgage rates than they were before the

pandemic. Express.co.uk has compiled a guide to explain how remortgaging works and when is the best time for you to remortgage. WHAT IS REMORTGAGING? A remortgage is when you take out a new

mortgage on a property which you already own. This remortgage can be used to either replace your existing mortgage or to borrow money against your property. Around a third of all home loans

in the UK are remortgages. READ MORE: MORTGAGE UK: REMORTGAGES, ERC & APPROVALS TO BE AFFECTED BY CHRISTMAS The best time to remortgage is when your initial fixed or tracker rate will be

coming to an end. You should keep track of the deals available with the changing rates. The process typically takes between four and eight weeks, so you should begin planning as early as

possible. To prepare for remortgaging you also should take steps to get your finances in order. READ MORE: MORTGAGE: BORROWERS COULD SAVE HUNDREDS VIA SIMPLE MOVE - HOW TO CHECK WHY MIGHT

YOU STRUGGLE TO REMORTGAGE? There are several reasons why you might struggle to remortgage such as you failing stricter affordability checks which have come into force since the coronavirus

crisis. If you are unable to leave your current mortgage because of your financial circumstances have changed, you are a mortgage prisoner. A report published this month by the London School

of Economics found mortgage prisoners are up to 40 percent more likely than other borrowers to default in the pandemic. READ MORE: MORTGAGE: 2 AND 5 YEAR FIXED RATE DEAL DIFFERENCES AT 10

YEAR LOW HOW MUCH DOES REMORTGAGING COST? If you change your mortgage deal during the initial fixed or tracker period, you are likely to be paid an early repayment charge (ERC). This payment

is calculated as a percentage of the outstanding debt and can be quite large. There may also be further costs to account for with a new mortgage such as an arrangement fee. An arrangement

fee is often in the region of £1,000 and can be added to the mortgage balance, which means you will pay interest on this amount. Furthermore, there will usually be legal fees to cover things

like valuing the property and conveyancing. These fees are often much lower for someone who is moving into a new property as there is less legal work involved.