A potential customer should find out if the putative broker is “whole of market” or if they compare mortgages from a selection of the leading lenders. If the latter, they will find the best mortgage deals from this more limited selection. This has the advantage of being cheaper and less time-consuming, but carries the risk that a really good mortgage will be overlooked. A whole market search is more thorough. A broker derives their income from either taking commission on the final transaction or by charging fees upfront. When they are working for commission, a broker typically charges the lender 0.25 per cent to 0.5 per cent of the mortgage’s total value, although for mortgages aimed at borrowers with poor credit histories, this may rise to 1 per cent.

Given the current economic climate, with lenders still being very careful in the wake of the credit crunch, there are not as many remortgages available as there were a few years ago. The ones that are available require a smaller loan-to-value (LTV), which is the sum lent as a percentage of the property’s total value. Most lenders are typically offering an LTV of 80 per cent; so many homeowners will have to wait until they have built up the required amount of equity. The simplest way to obtain a remortgage is to go with the existing lender. In most cases, the lender will be in touch shortly before a borrower’s current mortgage expires anyway to discuss their options. It is also important to remember that lenders’ increased caution means that they are not likely to be offering as favourable rates as they were before the credit crunch struck. There are still plenty of good offers out there and it only requires a bit of detective work to track them down.

A good bet is to enlist the services of a professional mortgage broker, who can devote their time to finding the best remortgage deal for you and who will also be able to find you financial products that are not directly available to the public. Under the Financial Services Authority code of conduct, brokers are bound to find the right deal for a particular borrower and are not allowed simply to recommend products which are solely to their own advantage.

Why is such a cover required? If you have to avert the consequences of losing a job, just make sure you have such a protective policy in place. This helps you meet your living expenses, pay up your pending loans and thus help your dependents indirectly. You need not worry about losing your collateral. It helps you safeguard your monthly income flow, be it accident, illness or a sudden loss of job. Your mortgage payments, rental bills, loan payments, house hold bills, credit card payments, grocery bills etc will be covered by income protection insurance. Obviously the longer you wait the cheaper the monthly premiums will be! Look out for companies offering back to day one cover which will pay you back to day one of your claim once the excess period has passed. Just shell out a little money every month and try to protect your payments in future. Unemployment Insurance cover, which protects you against sudden redundancy or unemployment is often sold by itself but because of the nature of the risk, commands a much higher premium. Consequently, payment insurance premiums and plans have become a lot cheaper now that independent suppliers have entered the market. Always compare the policies before you apply for one.