Homeowners are looking to save money through remortgaging and it is certainly a smart choice due to the possibility of saving a lot with a lower interest rate. In March, in response to the pandemic’s impact on the economy, the Bank of England’s Monetary Policy Committee (MPC) cut the standard base rate, not once, but twice. The Bank’s new historical low standard base rate of 0.1% increased the possibility of homeowners finding a lower interest rate on the remortgage lending market at a time when savings matters so much.

Homeowners have a unique opportunity to not only find savings for their household budget, but also to inject cash flow into it. There are lower interest rates on the remortgage market now in comparison to a year or more ago when homeowners likely secured their mortgage. Rather than letting their mortgage term end and being moved to their lender’s standard variable rate (SVR), a homeowner could remortgage with a lower interest rate and save money. For those that have had their property equity grow, they could turn their equity into cash with a remortgage.

Homeowners are being advised by experts to revisit the details of their current mortgage deal. Those that have had their term end and have been moved to their lender’s standard variable rate (SVR) could be paying too much. A remortgage could gain a lower interest rate for the homeowner willing to put in a bit of time and shop around for the best remortgage deal. It is easy to shop online and quickly gather quotes that could offer exceptional savings, as well as a fixed rate to lock in the low interest rate for months or years to come.

Homeowner demand for remortgages appeared to wane between July and August. According to remortgage data released from LMS instruction volumes fell by 31%.  The month to month comparison for completions declined by 14%. Of those that did remortgage, 42% increased the size of their loans in August.

Homeowners are looking toward remortgages for many reasons. The most common reason is to save money. No one wants to be putting more money out to their mortgage repayments than necessary. If there is a lower interest rate available, it makes sense to change and have savings every month. 

The novel coronavirus pandemic has had a major impact on the mental health of consumers. Not only is there anxiety over the illness in general, but also the safety of oneself and their family and friends. In addition to the worries over health concerns, there is the financial stress as well due to the pandemic. According to a recent survey, one group is finding some relief and peace of mind from the financial anxiety, and that group is homeowners remortgaging.