In an effort to help homeowners during the pandemic lockdown, the government helped bring about the possibility for a mortgage payment holiday. It was intended to help those that were cash strapped and finding it difficult to make ends meet financially. However, it is estimated that 70% of those that took a payment holiday did not do so because they had a financial difficulty according to banking trade organization UK Finance. No matter the reason, that skip in payments could have caused the homeowner to experience difficulty in remortgaging over the next twelve months.

Homeowners that may have been sitting on the fence waiting out the remortgage lending market for even better deals might have missed their opportunity. In the last week or so, lenders have been adjusting their interest rates on remortgage and mortgage products. This has prompted experts to encourage homeowners to take action sooner rather than later if remortgaging is their goal.

The remortgage lending market is evolving quickly. One day the loan to value (LTV) levels are in reach of more homeowners, then the next they are changing to more restrictive levels. Interest rates attached to remortgages from a lender can offer amazing savings only to be replaced by new ones quite quickly with higher rates or perhaps higher fees which cuts into the possible savings. So, homeowners are being encouraged to take action when they find the right deal sooner rather than later or take the risk of missing out.

The current lending environment has been attractive to homeowners. Their ability to get a remortgage could offer various types of benefits of which they could be interested in one of, if not all, possible opportunities. Since demand has remained strong in remortgage lending due to the low interest rates available, lenders have been keen to make the most of things on their side of lending to offer competitive and creative deals to assure they are the one to get the attention of borrowers.

There are numerous reasons for homeowners to be shopping around for a remortgage. Not only those homeowners that are close to having their current mortgage deal end, but also those that have allowed theirs to lapse and have been put onto their lender’s standard variable rate (SVR). For some, it could be worth taking on a fee to end their mortgage deal early to get a lower interest rate remortgage deal.

There has been a strong demand in remortgage borrowing from homeowners. No doubt the low interest rate deals available have pushed many to action. Yet, the numbers reveal that many are still waiting out the current lending environment, despite the fact that the Bank of England has lowered the standard base rate to the all-time historic low of only 0.1%. Homeowners have the opportunity to save money with a lower interest rate deal, and for many that savings could be substantial.