Interest rates have become increasingly lower when attached to mortgage and remortgage borrowing. Lower rates mean cheaper costs to borrow and since mortgages and remortgages tend to have such large values it makes sense to secure the lowest rate possible. When it comes to remortgages, it was recently reported that homeowners choosing to remortgage in May found an average savings of over £400 per month. Such a savings would be quite welcomed in an uncertain pandemic impacted economy. 

Recent remortgage offerings have been put on the market with interest rates below 1%. These deals are historically low for the lenders offering them. However, not every homeowner will be able to take advantage of such low interest rate offers.

The best remortgage deals are for those that are seeking low loan to value (LTV) offers, have exceptional credit histories, and are willing to pay higher fees to secure the lowest rates.

Deals with the lowest interest rates often do have the highest fees. That choice will not always be the right one for every borrower. Sometimes the fee will counter any savings offered by choosing the lowest rate. It could be the deal with the slightly higher interest rate and lower fee will combine to offer the best savings.

When saving is the top reason to remortgage, seeking the lowest interest rate offering could seem like the obvious choice, but fees must be taken into consideration to find the true savings available. Therefore, those shut out of taking advantage of the lowest rates should not feel slighted at missing out. The best deal could be the one that isn’t attached to the very lowest rate.

Shopping around online will offer a quick and easy way to determine what deals are available. Most remortgage lenders and brokers will offer quotes of possible deals. After a few answered questions, individualized possible offers can be in hand to review. This could be a good start in seeking the best remortgage deal and certainly could be a motivator to take action once the possible savings is offered.

Those with credit issues or complicated remortgage needs might consider working with a remortgage broker. Since they work with many lenders, they will have insight as to which lenders are more likely to work with the homeowner’s unique needs.

Not all homeowners have the same borrowing needs, and that is why there is such a variety of remortgage offerings. Look over many deals to discover the best one, and don’t be discouraged if the lowest one is out of reach due to credit history issues, LTV needs, or other issues. The best remortgage deal for some homeowners might not be the one with the historically lowest interest rate.