Mortgage costs are at their highest for seven years and it is getting more difficult by the day to get a decent deal – not helped by several lenders refusing to pass on December's base rate cut.

Not surprisingly the number of people remortgaging is slipping. Remortgage volumes declined by 21 per cent in November compared to October with more borrowers deciding to stay with their existing lender at the end of fixed rate loans, according to the Council of Mortgage Lenders.

It blames unattractive loans, the increased costs of remortgaging but also suggests that many homeowners are lying in wait - anticipating further rate cuts in the New Year. If you are coming to the end of your current deal, moving to your lender's variable rate is the cardinal sin as rates will be northwards of 7 per cent.

But there are thousands of offers on the market – and the one offered by your lender may not be the best deal in town. We asked the experts which deals they rate for homeowners looking to remortgage.

Melanie Bien, director at independent mortgage broker Savills Private Finance, says that when choosing a remortgage deal it is important to look beyond the headline rate. Many lenders offer low rates in order to propel themselves to the top of the 'best buy' tables but once you factor in the fee or other restrictions such as low maximum loan-to-value (LTV), the deal looks far less attractive.

Source: http://www.telegraph.co.uk/money/main.jhtml?
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