Homeowners seeking a remortgage, home movers and first time buyers seeking a purchase mortgage are encouraged to shop around for a cheap interest rate and do so without any thought as to loyalty to a lender.  Whether it is the lender currently holding a mortgage, a past one or the lender that worked with a first time buyer with another type of loan, loyalty should not keep a borrower from shopping around.  Being loyal could cost a borrower a lot of money when they could have found a better deal elsewhere.

Lenders are in a competitive mode right now and that means they are competing for the attention of borrowers by offering lower interest rates and better packaged deals.  Some have free valuation and legal fees while some offer longer fixed rate terms.  Weekly reductions in interest rates have occurred as lenders have sought to offer the best deal on the market.

Shopping around can lead borrowers to deals that best suit their needs.  Experts suggest that for those seeking to switch with a new remortgage deal that the interest rate not be the only consideration.  Savings are not only found in a lower interest rate.  Fees can be costly and negate any savings of a low interest rate.  Therefore the entire cost and savings of a remortgage deal must be considered to determine the best one for the homeowner.

Borrowers should be warned that the low interest rates currently on the market could be pulled any day.  Lending is tightening and demand is expected to grow.  These will cause lenders to change their interest rate offerings and savings will disappear.  Shopping around and getting acquainted to the offers on the market will help a borrower narrow down the choices.  The final choice needs to be for the financial health of the borrower and loyalty should not play a part in the consideration if a savings is to be found.