There are plenty of homeowners that have yet to secure a remortgage. They are sitting in a risky situation, and unfortunately there are many that simply do not know that there could be difficulties around the corner. There are a lot of factors coming together that are going to combine to make financial strains build on one another and make the coming year and a few years ahead possibly more challenging than ones in the past.

The UK economy could be heading for a recession. How long it will last is still up in the air. There are some experts that believe it will be long lasting, others forecast a shorter time in a recession. A recession is often felt longer by consumers before the data reveals it officially. Therefore, there are strains already pulling at the stability of household budgets.

Inflation is still a problem. It is not going away any time soon and it is far from the Bank of England’s target rate of 2.0%. It is currently above 10%. The impact of inflation on households has been difficult for over a year. It hasn’t been easy, and the pains of it are here to stay for at least the rest of the year. Even when inflation begins to recede, it will take time for recovery not only for the economy, but households as well.

Interest rates have been rising since December 2021. In just over one year, the rate increased from almost zero at 0.1% to 4.0% in February 2023. It is a substantial increase to occur in one year. 

Homeowners that have a mortgage on a fixed interest rate have so far been shielded from the rate hikes. Many are going to be coming to the end of their mortgage deal and will leave behind their interest rate, which is likely much lower than they will find offered currently. A higher repayment could be a shock to many homeowners, especially homeowners that have been dealing with inflation and facing a recession.

When their mortgage term ends, the homeowner can remortgage or be moved to the lender’s standard variable rate (SVR). A remortgage would be the likely choice, due to it offering the ability to secure a fixed rate and an interest rate usually lower and therefore more affordable than a SVR.

Experts encourage those that have already been moved to a SVR, those coming to the end of their mortgage deal and actually all homeowners to consider shopping for a remortgage. By obtaining quotes to review and compare, the homeowner can prepare a strategy to make the most of the opportunity to save money despite the current economic situation.

Saving against a SVR and saving against rising rates is a possibility with a remortgage. It offers an opportunity to get a fixed rate and shield against further rate hikes. Locking in a current rate before rates rise further is a smart strategy for many. Some homeowners focused on securing a current rate are taking on a penalty fee to end their mortgage deal to allow a remortgage earlier rather than later to avoid higher rates.

It is easy to discover if a remortgage would be helpful. In a matter of minutes, a homeowner could have a quote in hand by simply visiting a remortgage lender website. Visiting another and then another could offer quotes to compare. Visiting a remortgage broker website will offer many quotes from a variety of lenders at one website to review and compare. 

There is no time like the present to plan and prepare to endure the months ahead no matter what financial strains may come. A remortgage could be a helpful tool to make the year easier. The way to find out is to shop for a new deal online. Making it a priority and shopping before the weekend is over could start the week ahead with a plan that could make all the difference for 2023.