Homeowners Encouraged to Start Shopping for a Remortgage to Escape SVR

Homeowners Encouraged to Start Shopping for a Remortgage to Escape SVR

Homeowners are being encouraged to shop for a remortgage and the sooner the better. Those that have had their mortgage deal end, those that are close to having their mortgage end, and those close but not yet ready to remortgage are all encouraged to take advantage of the opportunity to shop and see what savings could be had. In fact, for any homeowner that has mortgaged in the last ten years it could prove to offer a substantial savings.

When homeowners don’t remortgage, they are moved to their lender’s standard variable rate (SVR). That is considered a risky interest rate. Since a SVR can change and fluctuate as the lender requires it can catch a homeowner by surprise. If it lowers it could be a nice surprise. If it increases and the homeowner finds the increased interest rate to be difficult to pay versus their previous rate, it could cause a rush to remortgage. It means paying more than one would need to pay if only they had gotten a remortgage.

Currently SVR levels are at double or more the level of fixed rate mortgages offered just two years. Therefore, a homeowner moved to a SVR due to not remortgaging could find the new repayment amount shocking.

Even homeowners that aren’t close to having their mortgage deal end are encouraged to start shopping soon for a remortgage. By getting quick quotes online it is easy to discover what savings are available. Some might find that ending a deal early, even with a fee attached, could offer an opportunity to get a current remortgage and secure a low interest rate.

When considering a remortgage, homeowners should look at the overall savings of a remortgage including any fees. It offers the true level of the savings available.

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