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.

Many households are struggling with the impact from the global pandemic caused by Covid-19. Businesses are having to learn to operate differently to keep staff and customers safe, with some unable to do so and survive. Jobs are less secure and finances are a worry to many due to that lack of security. Those with budgets are finding it a worrisome state to make ends meet and plan for the future while also having to fight an illness that is running rapid through communities. It is hard to set goals, especially financial ones, in such an environment that is changing day to day.

The Bank of England’s Monetary Policy Committee met yesterday to review and make decisions on the state of the current UK economy. There had not been an expectation that the MPC would choose to cut the standard base interest rate as they had twice in the month of March. No change to the rate was the outcome. The base rate will remain at the historic low of 0.1%.

The Bank of England’s Monetary Policy Committee (MPC) is due to meet this week on 6 August. Probably never has there been so much attention given to the meeting. In March, the MPC met not once, but twice, in which they cut the then standard base interest rate to a historic low of 0.1%. The response to the global pandemic from Covid-19 led to the cuts and many are anxiously awaiting the possibility of another cut and perhaps a move to UK negative interest rates.