Savvy Homeowners Remortgaging Early Rather Than Miss Out on Savings

Savvy Homeowners Remortgaging Early Rather Than Miss Out on Savings

Homeowners have been known to simply let the opportunity to remortgage slide. At the end of their mortgage term, rather than remortgage, they simply allow their loan to be moved to the lender’s standard variable rate or SVR. However, with interest rates from lenders reaching historic lows, fewer homeowners are letting their mortgage deal lapse to a SVR, in fact, many are choosing to remortgage before their current term ends to take advantage of possible savings.

Hundreds of pounds could be saved per month with a lower interest rate at the levels being offered. Some remortgages have been reduced to below 1.0%. With borrowing so extremely cheap, homeowners are not ready to miss out and wait till their term ends. Instead, they are remortgaging before their term expires and taking on any penalties for doing so.

The reality is that some homeowners will indeed be able to find a fixed rate remortgage with such a low interest rate in compared to what they were paying it makes financial sense to remortgage sooner rather than later when rates could begin to rise. The fixed rate deal will lock in the low interest rate for years to come. Any penalty fees or other costs to the remortgage could negate any lower interest rate savings, but for the savvy homeowner that weighs savings against costs to find the true savings the best remortgage could be found.

Shopping online is an easy way to begin seeking out information as to what deals could be available. Going website to website of lenders will give quotes to compare. Those that would rather do a one stop shopping will find remortgage brokers offer quotes from a variety of lenders that best suit their needs. In fact, some lenders give brokers exclusive deals they do not offer to their regular customers, so a unique remortgage offer could be found.

Again, savings as well as fees and costs will reveal the true savings of a remortgage. Though for some homeowners on SVRs, the savings might be accepted, even if the savings is low. For the homeowner could gain peace of mind in securing a fixed rate deal as a safety net against rising rates that could occur as early as the beginning of next year.

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