For thousands of UK homeowners, the financial landscape is shifting rapidly. Many are approaching the end of five-year fixed rate mortgage deals that were acquired in a period of unprecedented low borrowing costs. When these deals were struck, the Bank of England’s base rate hovered at a mere 0.1%, and lenders responded with historically low rates, making it a golden era for taking out a mortgage. For those who locked in a rate during this time, the prospect of remortgaging can feel daunting. Today’s rates are nowhere near the ones that existed half a decade ago. However, the need to shop for a remortgage could not be more urgent and essential and especially for those who wish to avoid being automatically transferred onto their lender’s standard variable rate (SVR), which is almost always significantly higher.

It is a common misconception among homeowners nearing the end of their fixed-term deals that accepting whatever comes next or simply allowing the mortgage to revert to the SVR is the path of least resistance. In reality, this approach could prove needlessly costly. SVRs tend to be several percentage points higher than fixed or tracker rates offered on new remortgages, potentially adding hundreds of pounds each month to repayments. The savviest homeowners understand that although today’s lending rates may not be as low as those during the base rate’s nadir, by shopping around and comparing remortgage options, they can still secure terms far better than the SVR and suitably tailored to their circumstances.

This is especially true for those whose five-year fixed rates are expiring. While it is true that the ultra-low rates of the 2020-2021 period have vanished, lenders continue to compete for business by offering a variety of fixed, tracker, and discounted deals. Each type of loan offers its own set of advantages. Fixed rates provide certainty and stability in monthly payments, tracker rates can potentially offer savings if the base rate falls, and discounted variable rates may suit those willing to accept some fluctuation in exchange for a lower initial rate. By seeking out the best opportunity for their unique needs, be it security, flexibility, or the lowest possible monthly cost, homeowners can offset some of the disappointment of losing their rock-bottom rate.

Not every homeowner, however, is coming off a five-year deal. Some are reaching the end of two-year fixed terms, and for this group, there may even be a rare piece of good news. Many of these homeowners locked in higher rates during a period of base rate hikes and might now find that remortgaging today, even with the rates available, could result in a saving compared to their current deal. This underscores the importance of not assuming that remortgaging always involves accepting a higher rate. Circumstances vary, and so do the deals on offer, an argument for shopping around rather than settling for the default option.

A notable portion of homeowners, though, have already let their fixed deals lapse and, in anticipation of imminent base rate cuts predicted by many analysts and economists, have allowed their mortgage to transition onto their lender’s SVR. The rationale was simple: why lock in a new rate now when better deals may be around the corner? Yet, as the Monetary Policy Committee’s (MPC) rate-setting timeline has become less certain and the prospect of multiple cuts by year-end has dimmed considerably, many homeowners are left paying a premium while waiting. SVRs are typically one of the most expensive ways to borrow, and the difference between the SVR and the best available remortgage deals can represent a substantial monthly saving that should not be ignored. For those who have been waiting for the “perfect” moment, the present reality makes it clear that continuing to ride out the SVR is a gamble with little merit.

Fortunately, obtaining remortgage quotes is easier and faster than ever before. Thanks to advancements in technology and the competitive nature of the mortgage market, homeowners can receive tailored quotes online in a matter of minutes. Comparing deals no longer involves laborious paperwork and multiple phone calls; instead, it can often be done from the comfort of one’s home with just a few clicks. For those uncertain about which product best suits their needs, working with a remortgage broker is an excellent starting point. Brokers have access to a wide range of products and can identify deals that may not be advertised directly to the public. Moreover, they can offer invaluable guidance on the finer points of fees, incentives, and loan terms, ensuring that homeowners make an informed decision.

Timing, however, is of the essence. Lenders remain competitive, and many are still offering attractive deals, especially as they jockey for market share in a challenging economic environment. But this window of opportunity may not last. Should inflation remain stubbornly above the Bank of England’s 2.0% target for longer than anticipated, the optimism among lenders that fuels today’s best offers could dissipate. In such a scenario, lenders might begin to withdraw their most competitive rates, leaving homeowners who delay with fewer and less appealing options. The message is clear: waiting for further base rate cuts in the hope of marginally better deals could mean missing out altogether on the best the UK lending market has to offer today.

UK homeowners cannot afford to be passive as their fixed rate periods draw to a close. Whether facing the end of a five-year or two-year deal, or already paying the premium on an SVR, the marketplace still offers the potential for significant savings through remortgaging. The ease of obtaining and comparing remortgage quotes, combined with the expertise of brokers, removes much of the stress and uncertainty from the process. Given the risks of rising inflation and the unpredictable nature of interest rate forecasts, acting now, rather than waiting, could be the difference between financial prudence and unnecessary expense. Shopping for a remortgage is not merely an option, it is, in the current climate, a necessity for every savvy UK homeowner.