The hope of becoming a homeowner is still very strong in the UK. Families, couples, and even professional minded singles are growing in numbers of those looking to fulfill the dream of being a homeowner. Going through the process of shopping for a property, finding agreement with a seller, and then securing a mortgage can be taxing. Once the homeowner moves in and all is complete there is little notice to a mortgage except for keeping up with the repayments on time.

Remortgaging isn’t often researched by new homeowners. Since many purchase their first home with short terms, it is only a few years on before their mortgage deal ends and they are adjusted to the lender’s standard variable rate (SVR). At that point, the homeowner no longer has a mortgage deal with the lender, and instead they are paying their property loan on an adjustable interest rate set by the lender alone.

An SVR is considered by most experts to be risky. The rate might be higher than would be found with a remortgage and therefore the repayments are more than they need to be, but above that, the rate is easily changed by the lender with little notice to any homeowners. Even a small increase in the rate could put stress on a homeowner’s financial budget. In some cases, even a small increase could put hardship on the homeowner and the pressure to remortgage is immense.

As new first time homebuyers become homeowners it is important to keep in mind to start shopping around for a remortgage early. Put loyalty away and look for the remortgage from a lender that will be best for the homeowner.

In addition, homeowners are encouraged to consider remortgages that are perhaps not the ones with the lowest interest rates. Look at the overall savings of a remortgage deal which would include any fees or other costs. A remortgage with a slightly higher interest rate and fewer or no fees could be the real savings.