Homeowners could be unwittingly "throwing money down the drain" by failing to switch their mortgage to a better deal, it has been claimed.

According to Moneywise magazine, people who have had the same mortgage for ten to 15 years and are paying their lender's standard variable rate could save substantial amounts by remortgaging.

Editor of the personal finance magazine Rachel Williams said that people are often too "cautious" when it comes to changing their mortgage and may find that the process is a lot simpler than they had realised.

She advised: "The easiest way is remortgaging with your existing lender, because then it's just a case of signing a few forms and being transferred.

"But if you can get a better deal elsewhere, you should remortgage with a better provider."

The number of remortgage approvals increased by four per cent in August this year from the corresponding month in 2006, according to data from the British Bankers' Association.

Self storage can offer another way for homeowners to save money.


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