Remortgages are primarily sought out for the ability to save money. With a lower interest rate, a homeowner might in some instances save a substantial amount of money, which could be possible with the current historic low rates being offered by lenders. Other times, a remortgage is secured to keep from having to pay more than necessary by securing a fixed interest rate to protect against rising rates. It can also put cash into a homeowner’s hand with an equity cash release remortgage. During the pandemic, it appears a remortgage is also offering peace of mind.

In a recent research study commissioned by NatWest, almost half of homeowners remortgaging stated it had provided a positive impact on their mental health. There were 43% reporting the positive impact, and 23% stated it had significantly improved their mental health. 

A remortgage is said to have relieved financial anxieties for almost 1 in 10 homeowners remortgaging due to the need to increase their monthly cash flow due to the pandemic.

The pandemic has also deterred homeowners from moving home with 40% stating they had planned to sell their home prior to the pandemic outbreak, and now 38% no longer plan to sell.

There were 62% that responded they would consider a remortgage the second time to fund improvements to their home. The study revealed that 19% of the homeowners recently remortgaged to fund home improvements, while 43% sought to reduce their monthly payments.

Homeowners that have been watching the offers from lenders might be noticing a slight uptick in the interest rate levels being offered as a tightening on lending seems to be occurring. However, there are many lenders still in a competitive mode and looking for the attention of borrowers with low interest rate deals. It is encouraged by experts that homeowners considering a remortgage shop around and take action sooner rather than later to secure a low rate and get the peace of mind others have experienced.