Homeowners looking to remortgage are often tempted to take the remortgage offer from their lender. It could seem like an easy path and a good offer, especially if it is line with the interest rate the homeowner is used to paying. Even if it is slightly higher, it could seem a better choice than going onto the lender’s standard variable rate (SVR).
Homeowners have an opportunity to possibly save money with a remortgage. For some, that savings, could be substantial. Low interest rates attached to remortgage deals have been offered for months now. In March, the Bank of England’s Monetary Policy Committee (MPC) lowered the interest rate in response to the global pandemic not once, but twice. The new standard base interest rate of the Bank sat at a new historic new of 0.1%. Savings being found was a great possibility for most homeowners.
Homeowners are being encouraged to review their mortgage repayment interest rate. If the homeowner allowed their mortgage deal to lapse without choosing to secure a new deal through remortgaging, they could be paying more than necessary. To not miss out on any opportunity to save money, and in some cases a substantial amount of savings, it is important to know the interest rate of the current mortgage situation.
Homeowners are missing out on remortgaging. Perhaps there is not a more needed time than now to discover a savings and pay less on one’s monthly repayments. Interest rates are low, and many lenders are competitive and releasing remortgage products that are attractive to borrowers at such a time as now with the global pandemic ongoing. However, it appears through recent data that homeowners are choosing to let their current mortgage deal lapse and are content to move onto their lender’s risky standard variable rate (SVR) rather than seek the possible benefits of a remortgage.
Remortgaging might be the long term way to save money and give relief to a homeowner’s financial budget, but the number of remortgages seems to be declining according to recent data from LMS. The reasoning behind the decline in remortgage instruction volume is thought to be the ability for homeowners to take a mortgage repayment holiday. With that opportunity, homeowners have a quick fix and a bit of relief, though of course it is a short lived solution to what could be a long term economic problem as the pandemic seems to show no letting up. Experts encourage homeowners to not push the opportunity to remortgage aside since such low interest rate offerings could offer a longer term substantial savings.
When a homeowner finally finds the best remortgage deal for their situation, the desire to quickly complete the process and secure the deal is of utmost importance. For many the remortgage will offer savings and the sooner the better to start realizing that savings. However, due to the operating restrictions and difficulties for businesses in the midst of the pandemic, a remortgage might take longer than usual. Knowing this, a homeowner should be encouraged to take action sooner rather than later when they find the right remortgage offer.