The best remortgage deal could be the one that allows overpayment.

Borrowers looking for the best remortgage deal should look for one that allows penalty free overpayments. Savers receiving low interest rates are being recommended to use the money to pay down their mortgage.

Some lenders punish borrowers who try to repay their mortgage more quickly and borrowers on special fixed or discounted rate deals are especially penalised. However some lenders will let borrowers overpay up to 10 per cent annually without penalties. When looking for the best remortgage deal, borrowers should double check what lenders will allow, as if there are penalties overpaying is rarely a good idea.

Before any borrower arranges an overpayment it is a good idea to put aside between three and six months worth of bill payments as this will help cover any emergencies such as job loss. Unfortunately if a borrower is unable to meet future mortgage payments the fact they have overpaid in the past the will count for nothing. It is worth noting that mortgage over payments are not a property investment, the initial  purchase is the investment and overpaying is just an issue of debt clearance.

For those home-owners looking to remortgage, a smaller mortgage will lower the LTV and if it drops below one of the crucial 90, 80, 75 or 60 per cent thresholds it could  a mean a much cheaper deal. Remortgage deals offered by lenders are still good, however home-owners looking for the best remortgage deal are being advised to make a decision soon before these offers disappear.