The pandemic has taken a financial toll on many. Homeowners that have found themselves in difficult financial situations due to the pandemic could be facing another difficulty. It has been noted by experts that it could be costly for a homeowner to be moved to their lender’s standard variable rate (SVR) rather than remortgaging. In fact, it could cost them thousands of pounds due to the average SVR being higher by almost double the interest rate a homeowner might have been used to paying. 

Remortgaging homeowners on the other hand could save hundreds of pounds per month by getting a remortgage that has a lower interest rate than their previous mortgage.

No one should choose to pay more than necessary by allowing their mortgage deal to lapse and the lender to move them to their SVR. However, many homeowners could be making the mistake in believing their financial difficulty during the pandemic will keep them from being able to remortgage. So, they accept the fate and their household budget suffers.

Loss of employment, or a decline in income are normally major difficulties to overcome when trying to borrow, but some lenders could be willing to take the risk on lending to homeowners that have special remortgage needs and circumstances.

Experts encourage homeowners to consider working with a remortgage broker in the case of a unique remortgage need. They work with many lenders and would know which lenders could be willing to work with a homeowner. They also could have exclusive deals from lenders not offered to the general public which could offer greater savings.

Pandemic impacted homeowners are not doomed to be moved to a SVR and lose money when their mortgage deal ends. Rather than choose to accept paying more than necessary, homeowners should consider working with a remortgage broker to perhaps better the odds that they could indeed save money rather than pay out more.