Remortgage Borrowing Becomes Historically Cheap with Many Lenders

Remortgage Borrowing Becomes Historically Cheap with Many Lenders

For homeowners considering a remortgage, we have one question, “What are you waiting for?” Borrowing has become cheaper than seen during the economic crisis. The standard base interest rate set by the Bank of England is at a historic low, which means it is the lowest interest rate ever set by the Bank in over 300 years. If you don’t understand what a low interest rate means, it is the cost of borrowing. Lower interest rates make it cheaper to borrow than higher rates. With historic lows, that means borrowing is cheap, and very cheap in relation to what was seen before the pandemic and before.

Some lenders are offering rates below 1%. Yes, below 1%. Not only are they offering deals at rates below 1%, but some are so competitive to get the attention of borrowers they are offering cash incentives to switch. 

Homeowners are capable of saving substantially with a remortgage. Those that have had their mortgage deal end and allowed it to convert over to their lender’s standard variable rate (SVR) are likely paying double or more the interest rate that could be found with a remortgage. In fact, in one report the average savings per month for remortgage homeowners amounted to £400.

Rather than miss out on that level of savings, homeowners are encouraged to shop around for a lower interest rate than the one they currently have, whether they are on a SVR or they are close to having their current mortgage deal end.

A quick and simple way to shop remortgage deals is online. A homeowner can shop a website of a lender or with a remortgage broker to get access to many lenders at one time and get quotes. The possible remortgage offerings will allow a homeowner to narrow down choices and take action while lenders are competitive and offering amazingly low interest rate deals.

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