Home owners are encouraged to take notice of their current mortgage status and their interest rate. Some may have allowed their mortgage deal to end and are unaware that they have been moved to their lender’s standard variable rate (SVR). If so, they could be paying much more than they need to on their repayments.

The SVR is considered a risky interest rate for homeowners. It can fluctuate quickly and with little notice pushing homeowners into a rush to remortgage and save money when interest rates increase to a point that paying is financially difficult.

A bit over a year ago, a lender’s SVR might not have been so bad, but most SVRs are now much higher than they were back then.

Homeowners that obtained a new mortgage or a remortgage just a few years ago will find that a SVR is perhaps twice the interest rate level than that of their previous deal. There could be even more increases on the way and that is even more of a reason for homeowners to take notice of their current mortgage deal.

A remortgage, and namely a fixed rate remortgage, could be the answer for those homeowners not willing to pay more than necessary on a property loan. The fixed rate would give peace of mind from any increases by the Bank of England during the term. More importantly it will keep the homeowner off a lender’s risky SVR at the end of a mortgage term if they remortgage soon enough.

Whether a homeowner is already on a SVR, is close to their mortgage deal ending, or they have some time to go, shopping around for a remortgage will offer valuable information on just how much of a savings is possible. Taking action sooner rather than later could offer a substantial savings for months and years to come.