Most people only think about mortgages when moving house, but switching to a better deal must be a priority for anyone who is paying the standard variable rate on their mortgage.

With the typical variable rate at 7.74%, you can save hundreds of pounds a month by remortgaging with another lender. If you have a £80,000 mortgage you could save £160 a month – almost £2,000 a year. That is equivalent to a pay rise of almost £4,000 for a higher rate taxpayer.

With lenders competing so fiercely for your business, many people will pay no fees for remortgages, an attraction for those who are put off by the initial costs of transferring from one lender to another. Some lenders offer to pay for legal and valuation fees that would normally add up to more than £500.

The Mortgage & Lifecover Network, the independent mortgage broker dealing in the remortgage market, has been inundated. Joe Buzzo, their Managing Director says: " We are taking a lot of remortgage business from people on the standard variable rate because they can see how much they can save. We pay all their remortgaging costs – valuation fees, legal charges, everything and charge no fees ourselves."

Many of its fixed or discounted mortgages carry no overhanging redemption penalties, which therefore does not lock you into the standard variable rate once the special deal has expired.

However, the firm specialises in flexible base-rate tracker mortgages, which guarantee never to be more than a certain percentage point above the Bank of England base rate for the term of the mortgage. One of the best current deals is only 0.74% above base, thus charging just 6.74%. Most high street lenders set their variable rate almost two points above the base rate, which is currently 5.75%.

With many people predicting a short-term rise in interest rates, discounted or fixed-deals, which give a substantial saving compare with variable-rate and even tracker loans are also popular.

Every borrower is advised to work out the benefits of remortgaging. Virtually everybody can save money unless they already pay a competitive fixed or discounted rate. The big banks make huge profits because of apathy of most mortgage customers.

Remortgaging can be used as a way of financing a deposit on a second home for holidays or to let out. More people are buying a second property as the housing boom has boosted the amount of equity in most people’s homes. The lack of people who realise they can simply remortgage to save money is astounding..

It only tends to become an issue when people are moving or need to raise some capital. People should review their mortgages every few years. That is easy now that independent brokers can help them. They should make sure they choose deals with no lock-ins so they can remortgage with other lenders as soon as the right offer comes along.

If you want the best remortgage deal, you will almost inevitably have to leave your existing lender. Most lenders reserve the best mortgages for new customers in a bid to steal business from rivals, leaving existing borrowers in the cold.

Many brokers say one of the most infuriating things that prevents remortgaging with a new lender is brand loyalty. People tend to have an affinity with their lender and are somehow worried that if they leave they will be sullying a relationship or endangering their chances of getting a mortgage in the future. It is not like ditching a girlfriend who might never speak to you again – it is a business relationship and smart borrowers never allow brand loyalty to be a factor in their decisions.

However, before switching make sure you check the terms and conditions of your new and existing mortgage. For example, you may be liable for a redemption penalty if you transfer your mortgage.

A mortgage packager will work out the feasibility of a remortgage . They will calculate what a mortgage rate you need to find, and for how long, in order to recover the penalty. They can search the market to see if there is a good enough deal available, print off a quotation and fully explain the benefits of the change. With recent rises in rates and the loss of MIRAS tax relief, the time is right to examine your mortgage costs.