With many mortgages arising for renewal, specialists are urging householders to plan forward to make sure they aren’t left paying “hundreds or thousands” of kilos greater than they may very well be.

David Hollingworth, affiliate director of communications at fee-free mortgage dealer L&C Mortgages, stated: “With mortgages being one of the largest financial commitments many people face in their lifetime, it is important to watch out for potential pitfalls that could increase your monthly repayments.”

One key pitfall that many could get caught in is sticking with their present lender, particularly if they've been with them for years.

Mr Hollingworth stated: “Sticking with your existing lender and moving to a cheaper product on offer at the end of your current deal, could result in you paying hundreds or thousands more, in the long run.

“Even if you aren’t using a broker, it is important to shop around to ensure that you are finding the best deal, instead of just switching to the one that is most convenient.”

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Mr Hollingworth additionally identified that switching to a distinct lender will also be “beneficial” if an individual believes their residence has considerably elevated in worth since they final took out a mortgage.

He defined: “If your home is worth more than before, this can lower your Loan To Value (LTV), which is the ratio of the outstanding mortgage compared to your home’s current market value.

“A lower percentage LTV can result in lenders offering you lower rates of interest on your monthly repayments when it comes to remortgaging.”

Another frequent mistake folks make in terms of renewing their mortgage is leaving it till their present deal ends earlier than in search of a brand new one.

However, this can lead to householders paying “double” what they might have beforehand been paying, making it key to plan effectively upfront.

Mr Hollingworth stated: “Whether you have taken out a fixed-rate, tracker or discount mortgage, your lender is likely to automatically switch you to their Standard Variable Rate (SVR) at the end of your introductory deal, which for most people tends to be two to five years.

“Mortgage lenders set their own SVR, which isn’t directly pegged to the Bank of England Base Rate and tends to be much higher than rates you might find on fixed-rate, tracker or discount mortgages.

“The interest you pay with an SVR can often be double what you might have previously been paying for your fixed-rate repayments.”

To keep away from this, Mr Hollingworth stated it's best to start out occupied with new mortgage offers round six months earlier than an individual’s present fee is about to finish. This will enable time to line up a brand new deal and stop being moved onto a lender’s SVR.

He added: “If you are staying with your current lender, it can take around a month for them to process your application. But if you are switching lenders, this could take around three months, so it's best not to leave this until the last minute.”

Finally, Mr Hollingworth suggests folks ought to “always ask” a mortgage dealer how they're getting paid, to be able to keep away from dealing with any hidden prices.

He stated: “Using a mortgage broker to help you should make it much easier to find the best deal, but you should always ask them how they are getting paid.

“Brokers will receive a commission called a ‘procuration fee’ of typically around 0.35 percent of the mortgage amount, which comes directly from the mortgage lender, rather than your own pocket. A broker should always be trying to find you the best deal, but it is important to have a look around at what deals are available beforehand.”

He added: “Many brokers will also charge you a fee of around 0.3 to one percent of the value of the loan, in addition to receiving the procuration fee. If so, it may be worth asking why this is the case or considering finding a different broker who doesn’t charge a fee for their service.”