The housing market data for August has revealed much as to the state of recovery during the pandemic. The post lockdown market has drawn the attention of buyers and according to the Bank of England data, August experienced a 13 year high for mortgage approvals. Perhaps the pandemic is inspiring those staying at home more to do so as a homeowner. There were 84,715 mortgages approved in August which is a considerable jump from the 66,288 in July.

Homeowners are likely to find a very appealing remortgage to fit their unique needs, whether it is connected to a lower interest rate, a long term fixed rate, or offers cash in hand by converting built up equity into the deal. Those that are close to having their mortgage deal end are encouraged to shop early to assure they are not pressured to make a quick choice. Experts also encourage homeowners to shop from a wide variety of lenders or a broker, which deals with many lenders, rather than stay loyal to their current lender to discover the best remortgage choices.

Current remortgage deals should be grabbing the attention of homeowners. There is likely a very good chance that a homeowner could find savings by securing a lower interest rate. It could result in a substantial savings for some at a time when injecting more money into the household budget could be helpful as families navigate the pandemic. While savings could be found, it appears that remortgage lending is tightening and some homeowners could find it more difficult to grab their savings opportunity in the days ahead.

Remortgage lending has been lacking in demand as of recent. This despite the low interest rates attached to deals currently on the market. In comparison to what homeowners would have secured two or more years ago in an interest rate, remortgaging could offer substantial savings for those that are close to having their mortgage term end or for those that already have had theirs end and are now moved to their lender’s standard variable rate (SVR). 

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.