Homeowners are being encouraged to seek a remortgage. There could be substantial savings to be found, especially for those homeowners that had their mortgage deal end in October and have been moved to their lender’s standard variable rate (SVR). Those homeowners could discover that a SVR has an interest rate at double or more the rate they were used to paying.
The current interest rates have been spectacularly attractive in the last few months. Lenders are keen to grab the attention of borrowers and are offering creative and attractive mortgage and remortgage deals. For some lenders, their current lowest interest rate offering is at an historic low. Now there are whispers from experts that interest rates could be about to get even lower.
The housing market may not be in strong growth as in years past, but has been resilient during an unusual time due to Brexit. Most experts forecasted doom and gloom for the market. However, the market surprised those experts. Growth remained. Though not as robust, it has remained attractive to home buyers. There are too many opportunities to not pay attention and take advantage of the benefits available.
Sure the year has flown by and there is a lot going on. The holiday season is approaching and it is time to get ready for winter. In other words, who has time to think about taking on the time, effort, and stress to remortgage? Likely no one when you look at the busy, busy schedule of most people that is only going to get busier in the weeks ahead, but it might be worth all the fuss.
The latest house price index from Halifax revealed that UK house prices grew annually by only 0.9%. The average house price therefore is now at £232,249. There may have been growth, but it was disappointing in that it was the lowest growth recorded so far this year. However, it should be noted that throughout the months of September and October hopeful home buyers were likely put off by the concept of home buying as the Brexit deadline of 31 October approached.
Homeowners that are considering a remortgage are being warned to throw their loyalty to their current lender aside. Rather than be loyal and take the easy route to a remortgage with the present lender, it could be more beneficial to shop around for a remortgage. The best deals are likely being offered to new customers to entice them while current customers are missing out on substantial savings.