It must be remembered that there are costs attached to remortgaging, outlined on the next page. However, purely in terms of ongoing monthly expenses, remortgaging has the potential to slash a lot of money from your outgoings.

Here are a couple of examples:

1. If you are paying a Standard Variable Rate of 7.5 percent on a 25-year mortgage of £100,000, your monthly outgoings will be somewhere around the £735 mark, depending on the discounts that you initially enjoyed.

Switching to a new 25-year tracker mortgage that is currently charging 5%, your outgoings would immediately fall to a little over £580. This means you would be cutting your monthly expenditure by over £150, potentially cutting your outgoings by £1800 each year.

2. In a more extreme example, the borrower is currently paying 7.7 percent on a 25-year mortgage of £150,000. If for some reason this rate had been paid since the start of the mortgage, the current monthly outgoings would be around £1125.

If the borrower were able to remortgage on a heavily discounted two-year fixed rate mortgage charging just 2 percent, then the current level of repayments would fall to just £635. Even if the mortgage then reverted to 7.7 percent, this would still offer potential savings of £490 a month or £11,760 over the two-year fixed rate period. If this money was invested elsewhere or used to reduce the mortgage debt, it could be worth considerably more to the individual.