The latest data from LMS revealed homeowners that remortgaged were big savers with the opportunity to get a lower interest rate deal. Those homeowners that chose to remortgage in July saw their monthly repayments decline by an average of £200.76. The most popular remortgage product for remortgaging borrowers was a five year fixed rate deal. 

Homeowners are being encouraged to take a glance at their current mortgage. Many could be paying more than necessary on their mortgage and the money lost to such an oversight is gone forever. In a time when saving and cutting down expenses is so important, no one would want to be putting out more money from their household budget than needed, but apparently the number of homeowners doing so could be in the hundreds of thousands if not past a million.

When a borrower takes out a mortgage to purchase a home, that monthly repayment expense can often be the largest of all expenses going out and perhaps for most the largest overall expenditure so far in their lives. That sort of commitment can be massive and the expense can be as well. Yet, the mortgage deal obtained at the beginning does not have to be the same commitment, for with a remortgage a homeowner could obtain a lower interest rate and save money. Their monthly financial commitment could be less. Since no one should pay more than they have to, then it makes sense to remortgage and seek to save money.

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.