Homeowners that have their mortgage deal end and do not remortgage are moved to their lender’s standard variable rate or SVR. The lender’s SVR could actually help the homeowner if it is a lower interest rate than what the homeowner was used to pay on their mortgage term. However, the SVR can be risky to a household budget that cannot handle a fluctuating rise in their interest rate. That is why most homeowners will seek a fixed interest rate remortgage so that they lock in a low rate rather than facing a possible rate increase.

The new year has just begun and to make the most of it, there are opportunities to be found to make it a good start financially and could set up the best possible year ahead. Homeowners have the unique opportunity to grab a remortgage and with it all of the benefits attached. In a year ahead of unknowns due to the pandemic’s impact on the economy, the ability to leave more money in the household budget would be a good start.

The housing market through 2020 showed resilience and surprised even the most optimistic of those offering forecasts back when the pandemic started to impact the economy. However, despite lowered interest rates that would be expected to attract home buyers, demand grew even stronger. The need for a pandemic lifestyle dwelling became more important as lockdowns occurred and it was obvious Covid-19 wasn’t going away anytime soon. Spaces for working at home, studying areas for the children, and other home life needs pushed action for first time buyers and home movers to buy.

Homeowners could be paying more than necessary every single month due to their lack of obtaining a remortgage. According to a recent report by TSB Bank, the average homeowner could save over £2,000 this year by remortgaging to a fixed rate product connected to today’s interest rate offers. The average monthly savings reported of over £160 per month could certainly assist many households, but the research shows that 89% of homeowners have not considered a remortgage.

The housing market has been benefitting from the many looking to move into a dwelling that best fits their needs for the pandemic. It helps that in the need for a better suited home the interest rates are low making borrowing cheap, and there is a stamp duty holiday that can also offer savings so that money can put buyers into a more valuable home. Buyers are showing strong demand and that in turn helped the UK average house price reach a six year high for the end of 2020.

The housing market has benefited unexpectedly from the pandemic. It would have been thought that if yet another negative impact took its toll on the economy the housing market would be in trouble. However, as the pandemic forced lockdowns and a new normal for working and schooling, our homes took on a new focus. The pandemic lifestyle required new spaces, more time spent at home, and homeowners, especially, started looking around and seeing their property in a new light.