Interest rates are at an historical all-time low. The current standard base interest rate set by the Bank of England’s Monetary Policy Committee (MPC) is at the lowest rate in over 300 years. In fact, it is the lowest it has ever been. Lenders are offering deals on mortgages and remortgages that are below 1%. Borrowing is cheap and lenders are competitive to get the attention of those looking to take advantage of the opportunity in saving money while borrowing.

The opportunity to save money with a remortgage has increased. With low interest rates being offered, more borrowers are interested in the lending market and lenders want to gain their attention. To do so, lenders are offering amazing deals. The growing competition in the lending market has brought lower interest rates and more savings to borrowers, especially homeowners seeking a remortgage and home buyers seeking a mortgage.

As the month of September closed, the data in the housing market began to be compiled and once again the demand from buyers has proved to be astounding. The resilience in the housing market has surprised since the global pandemic took a strong hold on the economy early last year. Month after month the data has shown that demand is strong and that certain factors have caused the opportunity to buy property too good to overlook. According to Halifax, the average house price increased in September by 1.7% which is the strongest monthly increase in 14 years for the month which closes out the third quarter of the year.

Experts are warning us that heating costs are not going to be easy on the household budget this winter. Preparing for added expenses that seem almost inconceivable during the hardships brought on by the pandemic could simply start with shopping for a remortgage. Homeowners have the opportunity to find substantial savings through securing a lower interest rate in a new deal as well as other benefits.

October is one of the biggest months for remortgaging with almost £39 billion in mortgage terms ending. At the end of term of a homeowner’s current mortgage they have the opportunity to remortgage and seek a new deal. If they don’t, they will be converted to their lender’s standard variable rate (SVR). Data reveals that choosing a remortgage could save the homeowner substantial savings due to the current low interest rates available. In average, a homeowner could save £400 per month or more.

Home buyers that have been approved by a lender to purchase their first home can have a deep loyalty to the lender. When it comes to remortgaging, loyalty could be very much misplaced and the homeowner could be losing out on a large savings. Rather than be loyal to the lender that put the homeowner into the house, loyalty should be placed strongly with their budget and financial opportunities to find not only savings, but a safety net for the months and years ahead.