Experts are encouraging all homeowners to shop for a remortgage. That includes even those that are not close to having their current loan term end soon. For those that have had their mortgage term expire and have been moved to their lender’s standard variable rate or SVR, the encouragement is more of a shout. Whether far from having a term end, close to ending, or already expired, any homeowner should shop around and determine what savings are available because it could be substantial.

Lenders are offering very low interest rate deals and in some cases the deals have never been seen prior and are at historic low levels. The Bank of England’s standard base rate at 0.1% is at an over 300 year historic low which was put into place when the global pandemic took its grip on the UK. Cheap borrowing was welcomed as a means in which to keep businesses going, allow businesses to grow or be invented, and for people to borrow to survive in the lockdowns. It also was meant to help the housing market and it not only helped but spurred a boom.

Consumers, businesses, and home buyers weren’t the only ones helped by lower interest rates. Homeowners were and are capable of saving a lot of money with low interest rate remortgages. Homeowners that mortgaged two or more years ago could have obtained a loan with 2.0% or more interest rate and could now find one lower, even much lower, and it gives almost any homeowner a tremendous opportunity to save.

For homeowners that choose a fixed rate remortgage, the lower interest rate could be locked in for months and years to come which could help them save against rising interest rates. 

With savings a possibility, it is easy to start off looking at only the lowest interest rate remortgages, and nothing else. Moving from one lender to another, or contacting a remortgage broker that works with many lenders and picking a strategy of only wanting quotes that reveal the lowest interest rate available could have a homeowner missing out.

The lowest interest rates are often accompanied by higher fees. In considering the fees and the savings of the deal, it might not be as good as a slightly higher interest rate deal that has lower fees. 

Being open to considering any deal and shopping for the best one would be the best strategy of all. There are many benefits and opportunities in remortgaging and there are as many choices as there are unique needs of homeowners.

Some homeowners might be shopping mainly for a remortgage to cash out their built up equity and use their money to upgrade or improve their home. They might use the money to make their home more energy efficient during the winter and summer. Other homeowners might be only considering a long term fixed interest rate remortgage to gain peace of mind against rising rates. Others might be looking to get a variable rate on a short term and plan to remortgage later when they feel they will be offered better deals due to a more favorable LTV. 

Experts advise homeowners to look beyond the lowest rate deals and take into consideration all costs and fees of a deal to reveal the real savings a remortgage offers. Then again, a homeowner might be less interested in saving now as compared to when rates begin to rise and they are locked in to the low historic rates of today.

There are opportunities in remortgaging currently, perhaps better opportunities than seen in decades or ever before due to the historically low interest rates available. That is why experts encourage homeowners to shop easily and quickly online and discover what opportunity awaits them.