The lack of demand from homeowners for remortgaging products has led lenders to seek out their attention by offering lower interest rates.  Halifax recently announced that they are cutting their rates by up to an astounding 0.5%.  They are also going to cut selected product fees which offers homeowners even more of an opportunity to save.

The remortgage products impacted by the reduction in the interest rate are selected two and five year loans.  The two year remortgage at 0% to 60% loan to value (LTV) has been reduced by 0.2% to 2.29% with a reduced fee of £495.  For those seeking a two year remortgage at 80% to 85% LTV the interest rate has been reduced by 0.5% to 2.94% with a reduced fee to £495.  The remortgage products offer the homeowner their valuation and standard legal fees paid.

Craig McKinley, mortgages director at Halifax, remarked, “We’re committed to providing great value mortgage products to borrowers whether they are looking to remortgage their existing home, or whether they are buying for the first time.

“These latest changes not only offer competitive rates, but also support customers with the costs of their valuation and legal fees.”

Despite the low interest fees to be found on remortgage products and threats of future interest rate hikes from the Bank of England, homeowners have been staying away from lenders.  Being content on a lender’s standard variable rate (SVR) could put homeowners into risk should they unexpectedly face higher mortgage repayments.

Homeowners should shop around for the best deal for their needs and take all fees into consideration of the deal.  The lowest interest rate may not offer the most savings since fees should be considered as part of the cost of a remortgage.  By shopping around, letting go of loyalty to a lender, and considering the assistance of a remortgage broker, a homeowner will face better possibility of getting the remortgage that will best fit their financial needs.