Although you may not be thinking about remortgaging your home while you're in the middle of deciding on a mortgage you should be aware that one of the biggest potential costs of remortgaging comes from redemption penalties. You will incur penalties if you decide to switch from your current mortgage to a different lender in order to get a better deal before the end of a specific period.

While the cost of this penalty may vary, it generally amounts to about six months of your mortgage loan's interest. If you want to do a mortgage refinancing with a policy that has these types of penalties, you must make sure you have enough funds to cover them.