Homeowners could save thousands of pounds by renewing their mortgage early - but moving fast means bigger savings.
Mortgage rates are currently going up because of several hikes to Bank of England base rate.
This rate is factored in to the cost of new mortgages. Last month the Bank raised base rate to 1%, its highest level for 13 years.
This rate is likely to keep rising, as the Bank of England tries to tackle soaring inflation hitting UK households.
The Bank is expected to raise the rate again tomorrow.
This means more pain for homeowners, who are rapidly facing the prospect of paying up to 3% a year.
Analysis by broker L&C Mortgages last month found the best two-year mortgage at 60% loan-to-value was 2.36%, up from 0.89% in October last year.
The top five year-deal cost 2.46%, compared to 1.05% last October.
Someone with a two-year example £450,000 25-year home loan at 1.05% would pay £1,706 a month.
Someone with the same mortgage now would pay around £1,987 a month on the best 2.36% deal - £281 a month more, or an additional £3,372 a year.
And that would rise to £2,134 a month, or £5,136 extra a year, if two-year mortgage deals hit 3%.
Fixing this mortgage at current rates means a saving of £3,002 a year if rates do hit even 3% this year.
Someone with a small mortgage of £100,000 on a 25-year term at 1.05% would pay £372 a month.
Someone with the same mortgage now would pay at least £442 a month on the best 2.36% deal - an extra £74 a month.
That would increase to £474 a month, or £102 extra, if two-year mortgage deals rise to 3%.
But many Brits don't realise that they can renew their mortgage up to six months before it ends.
Many lenders will allow you to lock in a new deal early, meaning you could save cash before mortgage rates continue rising.
Always be sure to factor in any exit fees if you're leaving your mortgage deal early.
Teeing up a new deal before your current one ends is also good for a totally different reason.
If your mortgage expires and you don't agree to renew with your current lender or swap to a different one, you will end up paying a higher rate.
This is because you will fall onto your current lender's standard variable rate, or SVR.
This rate is normally around 2% to 2.5% above Bank of England base rate - meaning eye-watering charges of up to 7% or 8%.
Last month MoneySavingExpert founder Martin Lewis also flagged up the issue of rising mortgage rates.
Lewis said those on SVR tariffs have around 30 days to shop around before their bills rise, while others on fixed deals may want to consider locking in to a new tariff.
Martin Lewis' remortgaging tips
1. Find the details of your current mortgage
This includes the interest rate, monthly repayments and debt left to pay.
Homeowners should also work out what sort of mortgage they have, as well as the term - how long you have to pay it all off.
Crucially, also check to see if you have an early repayment charge - a fee payable if you switch too soon.
2. Check out the cheapest deal from your current lender
Taking out a new mortgage with your existing lender is called a 'product transfer'.
The main advantage of this is that it allows your lender to avoid the usual affordability checks they carry out on new customers.
It can also mean paying lower fees, and is less hassle in terms of paperwork.
3. Compare which deals are out there
Once you know what your lender's best offer is, go and check its rivals. A mortgage broker can help, though many will charge a fee.
4. Use online calculators to find the best deals
MoneySavingExpert has tools to help work out the best mortgage for you:
- Basic mortgage calculator -including what it'll cost
- Compare two mortgages
- Compare fixed-rate mortgages
- Should you ditch your fix?
- How much can I borrow guesstimator
5. Work out the best deal for you - and do your best to get accepted
If you remortgage, a lender will carry out financial checks on you.
Lewis said making sure you are creditworthy can help you improve your prospects.
He advised Brits to check their credit file (for free) to ensure there are no errors.
Cut back on credit applications and pay down debts, if you can.
Spending as little as possible in the months before applying for a mortgage can help too.
