Remortgages Could Save Money as well as Peace of Mind

Remortgages Could Save Money as well as Peace of Mind

Remortgaging is usually a part of a homeowner’s plan to save money. When a homeowner’s mortgage term ends if they do not remortgage then the lender will move the loan to their standard variable rate (SVR). The SVR could be higher than the interest rates available with a remortgage, or it could be very similar, and sometimes it is comfortably low. However, since the lender could raise their SVR with little notice to the homeowner, it is a risky rate for those homeowners that are more comfortable with a steady budgeted repayment amount.

There is another reason to remortgage these days and that is to find the security of a fixed rate deal. With a fixed rate over the term of the remortgage, the homeowner has a set amount that they will pay in their repayments. Even if there is an increase in the Bank of England’s standard base rate the repayment does not change. No matter if there are many increases over the term of the remortgage because a fixed rate remains just that, fixed.

Many economic experts believe there could be two possible rate increases by the end of 2019. The increases will likely be similar the last recent two of only 0.25%. It may look like a minimal increase, but it can turn out be a substantial amount. Much more than a homeowner would expect. One small increase could push a household budget from tight to squeezed beyond easy recovery.

That is why experts suggest that there is no time like the present to shop around and discover what a remortgage could do for you. It could save you money. It could save you money now and over the course of any increases that might occur with interest rates. It could save you money many times over if the rates increase several times over the course of the remortgage term. Most importantly it could save you a lot of stress, worry, and financial problems and offer peace of mind, which in this day and age is perhaps priceless.

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