Homeowners Could Be Paying More Than Necessary and Losing Money

Homeowners Could Be Paying More Than Necessary and Losing Money

Homeowners are being encouraged to take a glance at their current mortgage. Many could be paying more than necessary on their mortgage and the money lost to such an oversight is gone forever. In a time when saving and cutting down expenses is so important, no one would want to be putting out more money from their household budget than needed, but apparently the number of homeowners doing so could be in the hundreds of thousands if not past a million.

Experts are encouraging homeowners to revisit their current mortgage. Discover when the mortgage term is expected to end and prepare ahead of time to make sure the best decision is made to secure a savings if possible. That possibility is very high considering the very low interest rates available after the Bank of England cut the standard base rate to the lowest historic level ever at 0.1% in March.

Shopping for a remortgage ahead of time can inform a homeowner as to what savings are available. However, many homeowners allow their mortgage deal to lapse and then they are moved to their lender’s standard variable rate (SVR). A SVR is a risky rate as it can fluctuate and at times could put the homeowner in a rush to remortgage to avoid paying more when the rate rises. It also is typically associated with a higher rate than what could be found with a remortgage.

By shopping for a remortgage, a homeowner could discover lower interest rate deals and look for fixed rate deals that will lock in that lower rate for months and years to come.

There has been a lot to focus on recently with the pandemic and its impact on the economy, our lives, schooling, and more. It would be well understood that a homeowner would forget that their mortgage deal is coming to an end soon, or push aside remortgaging for the sake of an easier route of going onto their lender’s SVR. However, taking action and shopping for a remortgage could put light onto the fact that there could be money to save, and for some, a substantial amount of money making it important to take notice of one’s current mortgage status.

Remortgaging sooner rather than later could put a boost of savings into one’s budget and offer peace of mind in the days ahead as we enter our first winter with a global pandemic.

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