Demand Increases for Remortgages as Homeowners Seek Savings

Demand Increases for Remortgages as Homeowners Seek Savings

With the opportunity to save money due to lower interest rates, homeowners have been seeking remortgages. The volume of remortgage applications grew by 110% in April in comparison to the prior year according to an online broker. Experts have encouraged homeowners to shop online for remortgages to discover how much of a savings is possible. For some property owners, the savings could be substantial and amount to thousands.

Because the Bank of England’s Monetary Policy Committee, or MPC, dropped the standard base interest rate to the lowest in history at 0.1%, the level of savings available is attractive during a time when more money put into a budget would be helpful. 

The pandemic currently impacting the globe has consumers looking to save money by cutting expenses where possible. Since no one should pay more than necessary, seeking a remortgage could be the opportunity to strengthen a budget. This is especially so since a repayment is usually the most expensive line item in a property owner’s budget.

Experts encourage all homeowners to shop online. By shopping around online, a homeowner could discover how much of a savings is possible and be motivated to take action and secure a low interest rate for years to come.

They also suggest that homeowners consider all fees associated with a deal. The interest rate isn’t the only consideration to finding savings. Combining any fees and putting them against the interest rate savings will offer the true overall savings of a remortgage. Many times the lowest interest rate will have highest fees attached to it. By choosing a slightly higher interest rate, more savings might be found if it has lower fees. 

Brokers and lenders are looking to attract the attention of borrowers, so shopping around rather than sticking to the current lender could put a homeowner onto the path of the best remortgage and largest savings possible for them.

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