Before You Remortgage It Could Help to Shift Your Mindset
Often the process of a remortgage is simple. Your current mortgage deal ends and your lender alerts you as to the change of your interest rate should you choose a remortgage with them. You can seek a remortgage, and if not, be moved to the lender’s standard variable rate (SVR). Being moved to the SVR wouldn’t have been so bad a few years ago, and for some lenders it could have been acceptable only months ago, but that isn’t the case anymore.
An SVR is a risky situation for a homeowner that desires the security of knowing exactly how a repayment will impact their budget. Also, for those homeowners that mortgaged or remortgaged two or more years ago, a SVR could be at double or more the interest rate level they were used to paying.
Rather than pay more than necessary, homeowners are encouraged to consider a remortgage.
It might take a shift in a homeowner’s mindset to make the right choice. It is easy to put loyalty toward the current mortgage lender. They offered the current deal and perhaps they were the ones that made it easier than others would have to get on the property ladder, to move home, or to remortgage a few years ago. However, that loyalty could be misplaced as they might not be the one offering the best remortgage deal.
By resetting your mind to focus on the finding the best deal, even if it is with a different lender, the process will offer peace of mind that the best savings and benefits were found.