For homeowners, the best strategy according to the experts, is to shop for a remortgage no matter where one is in their mortgage term. For those already at the end of their term which have been moved to their lender’s standard variable rate (SVR), to keep from paying more than necessary a remortgage is certainly a good strategy to save money. Those that are close to coming to the end of their mortgage term could do well to consider shopping for a remortgage early. It allows time to prepare with important information in hand that will help any homeowner, no matter where they are in their mortgage term, to find the best remortgage offer.

When a homeowner comes to the end of their mortgage term they have the choice to remortgage or their lender will move them to their SVR. The lower interest rate will be found with a remortgage versus the SVR. Also, the SVR is likely to experience further rate changes. A remortgage for most is a better choice since a fixed rate could be chosen and it would offer protection from rate hikes, something a SVR would not do for a homeowner.

The Bank of England’s Monetary Policy Committee (MPC) is due to meet this week. There is a possibility of yet another rate hike, one which would put the standard base interest rate at the highest in over a decade and beyond any rate paid by the newer generations of homeowners. The rate has been hiked at each of the last ten consecutive meetings of the MPC which has taken the rate from almost zero at 0.1% to the current rate of 4.0%. The forecast is for at least 0.25% to 0.50% to be the chosen increase during the next meeting.

There are some that believe the rate should hold steady and allow the current rate to work against inflation. Others believe a rate cut should be considered to help those impacted by the higher costs of borrowing. However, inflation is the concern, and at last report it was still in double digits and far from the Bank’s target rate of 2.0%. 

There is also the matter of there not being a scheduled meeting of the MPC for April. Therefore, the choice of the MPC must hold until the next meeting in May in the hopes that inflation stays on a downward path. This is why there is more of a chance a rate hike will occur than not. It would be the preferred choice rather than face the rate of inflation climbing once more and leave the need for more aggressive choices at the next meeting.

Homeowners have been dealing with many strains on their financial budget. There has been Brexit, the global pandemic, higher energy costs, inflation, and rising interest rates. It is imperative that there be a priority to find ways to save money when and if possible. For homeowners, finding the best remortgage for their needs is likely a step toward easing their financial pains.

It is easy to shop for a remortgage as it can be done quickly online. A homeowner has simply to visit the website of a remortgage lender. Most will offer the ability to request a quote. After a few answered questions, the quote will be offered to review. Visiting several lender websites will offer quotes to review and compare. 

There is also the ability to make it even easier to discover an attractive deal by shopping with a remortgage broker. Brokers will offer quotes from many lenders at one time and they often have exclusive deals from lenders that are not offered directly to borrowers. It is a one-stop shopping experience and with many quotes in hand the homeowner could review and compare to find the best offer.

The MPC will meet on Thursday, the 23 March, and they will vote to choose for the rate to hold steady, to increase the rate, and possibly even surprisingly cut the rate. The choice will remain for at least until the next meeting in May. It provides time for homeowners to consider their current financial situation and if on a SVR it might be time to find a remortgage. Those close to having their mortgage term end would do well to prepare early, and in the coming weeks it could be the best time to prepare and do so by shopping for a remortgage sooner rather than later.