Homeowners are Missing Out on Substantial Savings by Not Remortgaging

Homeowners are Missing Out on Substantial Savings by Not Remortgaging

According to the Bank of England, remortgaging declined in 2020 in comparison with the previous year. The 2020 volume was 451,400 while in 2019 the volume was 587,600. The comparison of the start of the year versus the end of the year revealed that homeowners were passing over the opportunities for saving money. It could be that with the stress brought about by the pandemic, it was easier at the end of homeowner’s mortgage term to allow the lender to put them on their standard variable rate (SVR), but that ease could be costing them a substantial amount of money.

A recent study showed that the average SVR interest rate was double that of the average remortgage interest rate found from the top remortgage lenders. By simply remortgaging, a homeowner could put money back into their household budget. In seeking a fixed rate remortgage, the homeowner could lock in the savings for the term of the remortgage deal.

In yet another study, it was found that homeowners were not remortgaging for many reasons and that included not understanding that remortgaging could save them money and that they feared the complication of the remortgage process. Yet shopping for a remortgage can be done quickly online. 

Most remortgage brokers and remortgage lenders offer the opportunity for a homeowner to get a quick quote online. After answering a few questions, the homeowner will have information on possible remortgages. It is the first step in the process. Then the realization of the savings available and other benefits could be the motivator to complete the remortgaging process. 

In a time when the economy is uncertain, and while the pandemic does not seem to be going anywhere soon, the ability to save money, to lock in the savings for months or years ahead, and to gain some peace of mind, the process to secure a remortgage could be well worth it.

Those that feel overwhelmed and want an expert to help them along the way, a remortgage broker could be helpful. Brokers work with many lenders and will know which ones offer the best deals for a homeowner’s unique requirements. They will also know which are willing to work with those that have complicated remortgage needs and they often have exclusive deals from lenders that aren’t offered to the general public.

The savings could be out there, and discovering them starts with a quick search online.  

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