Mortgage rates fluctuate all the time, more so in unstable markets, such as the one being experienced currently in the UK. To avoid paying higher rates when mortgage rates fluctuate, many borrowers choose to switch their mortgage. It may seem daunting to a first-time mortgage switcher, but it needn't be. Your new lender will be more than happy to ensure that the transition is as straightforward as possible for you.

Remember that your main reason for switching lenders is to save you money. So the first thing you need to do is to start comparing mortgage rates. Online comparison sites are a fast and efficient way to check prices, so get on the web. Rates have fallen very recently so it's a good time to look for savings. In a recent online check we found that the Alliance & Leicester's two-year fixed rate mortgage has fallen 0.5% to 3.99% and the Abbey's two-year fixed rate was down to 4.29%, so it's a particularly good time to make savings on fixed-rate mortgages.

Another good time to switch is when your special mortgage deal - be it a fixed-rate, variable, or tracker mortgage - is coming to an end. When these special rates expire, mortgage loans revert to the standard variable rate, which is usually higher and means more expensive monthly repayments. So check to see when your special rate contract runs out and start shopping around so you're prepared to switch swiftly.

When you do decide to switch lenders, there are necessary costs involved. These can include mortgage arrangement fees, product fees, valuation fees, and solicitor and legal fees.

You should also be aware that your new lender may charge you a fee to start up your new mortgage policy with them. And one last fee to look out for is a charge that your existing lender may make if you switch, particularly if you decide to switch before your loan period expires.

However, the costs involved in switching mortgages may be worthwhile in the long term. The benefits of cheaper monthly repayments may outweigh the fees involved in switching, so take a note of all the costs and benefits, do your sums, and see if switching is right for you. Try Alliance & Leicester for competitive mortgage rates.