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The scariest thing in many people's lives is their finances. A mortgage is typically the biggest loan you'll ever have, and it's vital to keep in control of your interest rate, to avoid any nasty surprises.

Charcol.co.uk estimates that 12,000 mortgage holders were due to come off their fixed or discount rates in the latter half of 2007, forcing them onto their lenders' higher standard variable rates (SVR) and leaving them surviving on a skeleton budget.

One of the most spectacular jumps will be for the borrowers on the 4.39 or 4.29 per cent rates from Halifax in Summer 2005, and the 4.24 per cent rates from Alliance and Leicester.

Borrowers with a £150,000 Halifax mortgage at 4.39 per cent are currently paying around £548 interest per month on their mortgage, which could jump to at least £937 when they revert to the lender's Standard Variable Rate of 7.5%, unless they change to a new rate.

Katie Tucker, Technical manager for Charcol.co.uk, comments: "If the discount or fixed deal on your mortgage is about to come to an end you will have a nasty shock in store as lenders' SVR's have gone up considerably since you took your mortgage; typically more than a 1% increase in just the last year.

See how much you could save by remortgaging

"You should allow at least two months for researching and completing on your remortgage, and even one month on an SVR can put your payments up several hundred pounds, so a bit of savvy can keep you from being spooked.

"Some borrowers are due to revert to SVR’s as high as 8.1% (Bank of Scotland). Borrowers with a £150,000 mortgage could save £306 a month in pure interest simply by remortgaging to a more competitive loan, for example Abbey’s 5.59% 2 year tracker with £1,499 fee. The subsequent rate on this product is currently the lenders SVR of 7.84%. The overall cost for comparison is 7.9% APR.

"For a mortgage of £250,000, the comparable monthly loss if you stayed on the higher rate instead would be a gruelling £515 lost per month. Borrowers whose mortgages are due to fall onto the lender's SVR can contact their lender or any broker to find out the 'reversion rate' on their deal, and which way to turn if it's time to escape."

Which mortgage should I choose?

Some lenders offer their existing borrowers an internal 'product transfer' rate. "The lender's own transfer rates are often available without an arrangement fee or valuation fee so can be good value particularly for smaller loans. 'New borrower' rates, however, are often lower so you should work out the cost of your best remortgage alternative; or have a broker do all the leg work for you," says Tucker.

If your finances are frightful, shopping around makes you shudder, and your budget seems to go bump in the night, Charcol's easy guide should help:

1. Be prepared and think ahead

Allow two months to research you options and apply for your remortgage so it is ready in time for the expiration of your Early Repayment Charges. See what your existing lender can offer. Remember to ask how much your exit fee will be. The average is currently around £225.

2. Consider the term and features you need on your new mortgage

Work out what really matters to you: is it the total cost over the next few years, having free valuation and legals, or just a low rate? Could you pay a little bit more each month to reduce the term? Do you want to raise cash to consolidate debts or make improvements on your property? Do you have savings that may suit an offset account?

If your priority is low monthly payments, the overall cost of very low rates with a higher fee might suit you better.

3. Take to opportunity to review your insurances

If you are changing the loan amount of your mortgage you may need to top up your life assurance or critical illness policies. If you have changed job or given up smoking this could also affect your cover needs and premium.

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4. Make your application

At this stage you should seek advice to ensure you find the best mortgage deal for you. You will usually need to present one form of ID, and verification of your and address and your income.

5. Contact a remortgage solicitor

If your deal does not include free legal services, you will need a solicitor, likewise if you need non-standard legal work (such as a person going on or off the mortgage). A solicitor who is cheap but efficient should suffice. Make sure they complete on the right day - the last thing you want is to be inadvertently made liable for Early Repayment Charges!

Katie concludes: "Fixed and variable rates are similar at the moment so borrowers can decide between the two based on how they think rates will move in the next few years. If you want the security of your payments not increasing, fixed rates are better now than they have been for some time. However, trackers and discounts have the additional benefit of potentially reducing should the Bank of England interest rate fall. The important thing is to keep your payments affordable, and the bank-statement beasties away!"