The pandemic has taken a financial toll on many. Homeowners that have found themselves in difficult financial situations due to the pandemic could be facing another difficulty. It has been noted by experts that it could be costly for a homeowner to be moved to their lender’s standard variable rate (SVR) rather than remortgaging. In fact, it could cost them thousands of pounds due to the average SVR being higher by almost double the interest rate a homeowner might have been used to paying.

Homeowners could be missing out on a savings by not remortgaging. Not only could they be passing up on a savings, but they could be faced with paying even more than usual. Once a homeowner’s current mortgage deal ends they can either remortgage with a new deal or they are moved to their lender’s standard variable rate (SVR). It has been reported that while on the average remortgage deals could save homeowners hundreds of pounds per month, a SVR could cost them thousands.

The pandemic has made it difficult for many homeowners to remortgage and hopeful home buyers to purchase their desired property. Financial instability due to employment changes or self-owned business issues brought about by the pandemic or lockdowns has made borrowers more of a risk to lenders. According to a recent study, one-fifth of UK homeowners were unable to remortgage since the pandemic began.

Homeowners have been able to find substantial savings through remortgaging during the pandemic. According to reports, savings of £200 or more per month could be found by simply choosing to remortgage at the end of the current mortgage term rather than choosing to be moved to the lender’s standard variable rate (SVR). With the ability to save money, experts have encouraged all homeowners, no matter where they are in their current mortgage deal, to shop online and discover what savings could be found.

The housing market has proven to be resilient during the pandemic. Rather than suffering, deflating, and weakening the economy, it has remained surprisingly strong. Home buyers and home movers have found the need for a dwelling to best suit their new pandemic lifestyle requires a new home. The result is the housing market has been doing quite well.

There have been many homeowners that have taken advantage of the numerous benefits remortgaging has offered during the pandemic. Those that find lower interest rates than what they had previously could save, according to reports, £200 or more per month. Some have cashed out built up equity and used the money to upgrade their property to better suit their pandemic lifestyle needs. There are many opportunities with remortgaging, but perhaps the most important is that homeowners are reporting the ability to remortgage has brought them stress relief during the difficult financial times brought on by the pandemic and lockdowns.