Homeowners are being encouraged to do the one thing that many might find hard to do and that is let go of loyalty they have built up toward their present lender. That lender might very well have been the one and only that gave them the opportunity to become homeowners. Yet, their loyalty must be cut loose to take advantage of the current remortgage deals on the market.

Getting a remortgage in some ways is even more important than the initial mortgage that first time home buyers obtain. The remortgage, if secured in the next twelve months, could be the safety net that will hold the homeowners above the rising interest rates that many experts believe will occur.

If loyalty to the present lender isn’t cut away, then a homeowner could allow their mortgage to be moved onto the lender’s standard variable rate (SVR) at the end of their deal and feel comfortable there. Yet, a SVR is a risky rate in that it can change at the lender’s discretion with little notice to the borrower. That could put a homeowner in a stressful situation to hurry and rush into a new deal to escape higher interest rates while securing a remortgage that isn’t as good as what is available to those willing to shop around.

Without loyalty holding a homeowner back, they can feel free to explore the remortgage market and find the best deal for their needs. They can shop among different lenders or work with a remortgage broker. Brokers work with many lenders versus just one and have access to deals that the public doesn’t, so without breaking the bonds of loyalty a homeowner could miss out on the best deal.

It is normal to feel loyalty toward a lender that worked with you on your mortgage deal, especially your first one, but when you borrow money it isn’t personal, it’s business. Make sure you don’t pay more than you have to on your repayments and shop for the best deal, not the one deal you are offered by a lender you are loyal to or you could be handing over money that should have stayed in your budget.