Inflation is growing and that means that most everything is costing more than it did before. Saving money is more important than ever when inflation is growing and looking for ways to do so in a household budget can be next to impossible when also facing a winter with rising energy costs. Homeowners have a unique opportunity to save hundreds of pounds per month and gain peace of mind against the stresses of financial strains. Experts have encouraged all homeowners to shop for a remortgage as there could be substantial savings waiting for them.

Homeowners are being encouraged to shop for a remortgage sooner rather than later or miss out on many financial opportunities. Gathering remortgaging information before the New Year could be a smart strategy according to experts. Interest rates are still very attractive despite the increase in the standard base rate by the Bank of England this month to 0.25%. The move caused lenders to remove their lowest offers, but many of those were only possible for the strictest of qualifications such as low loan to value (LTV) ratios, top credit histories, and high equity levels. Therefore, the deals still available are definitely worth taking a look at and discovering what savings are available.

This year has brought an amazing amount of growth to property values. Not only has it helped build homeowner investments, but it has helped put those homeowners into a category of more attractive remortgage offers. As the property value grows, the divide between the amount of a loan and the value of the property narrows. The loan to value or LTV is one part of determining which remortgages a homeowner can choose from, and the narrower the loan to value the better the remortgage offers. 

Remortgage brokers and lenders are expecting a strong boom in the lending market from homeowners looking to take advantage of low interest rates before further rate hikes. The Bank of England’s Monetary Policy Committee (MPC) shocked many experts by choosing to raise the interest rate last Thursday from the historic low of 0.1% to 0.25%. The rate increase came at a time when inflation was climbing rapidly, but also in the midst of another large outbreak of Covid-19 which was thought to put off a vote to hike the rate. The increase took many by surprise and left homeowners without an opportunity to take advantage of the lowest interest rate remortgages.

The interest rate increase by the Bank of England came months before it was expected. Many had thought that despite the rising inflation rate the Monetary Policy Committee would hold off on raising the standard base rate until next year. This was especially so due to the rising number of Covid-19 cases in the UK. The impact of which could cause a slowdown of consumer spending. The increase from 0.1% to 0.25% is the first in more than three years.

Experts are encouraging all homeowners to shop for a remortgage. That includes even those that are not close to having their current loan term end soon. For those that have had their mortgage term expire and have been moved to their lender’s standard variable rate or SVR, the encouragement is more of a shout. Whether far from having a term end, close to ending, or already expired, any homeowner should shop around and determine what savings are available because it could be substantial.