According to latest research by L&C Mortgages* 36% of UK homeowners are sitting on their lender Standard Variable Rate (SVR). The current average lender SVR is 4.40%. So when you took out your mortgage there is a good chance that you were given a fixed initial rate deal e.g. 2,3 or 5 years.
So at the end of the initial rate you will usually have been switched automatically to the lender’s Standard variable Rate (SVR) of interest.
If this is you will probably be paying a lot more interest on your mortgage repayments each month than you need to.
You are not alone. 4 million UK homeowners are in the same boat.
Remortgaging your home is simple and if you are a homeowner with a mortgage it makes a lot of sense to review your monthly payments
The main reason is to keep monthly costs to a minimum.
By switching to a better deal with a different mortgage provider, remortgaging could potentially allow you to benefit from lower interest rates and lower monthly mortgage repayments.
By remortgaging you may be able to releasing equity in your home.
People often remortgage to provide money for:
Remortgaging can be a good low cost way of paying for your new home project.
2017 looks set to be another strong year for remortgaging after total remortgage lending in the UK topped £65.7 billion in 2016, according to research by conveyancing provider LMS.
This trend is likely to continue in 2017, with nearly a third of eligible homeowners planning to remortgage, as revealed in a survey carried out by TSB.
The impact of Brexit is likely to affect the market and could well lead to rising inflation and a squeeze on family finances, making remortgaging to cut monthly repayments an attractive option.
If you are thinking of remortgaging, it is advisable to do so now as lenders are likely to start raising their rates throughout the year as the full impact of Brexit begins to be felt.
Use our free remortgage calculator today.
*Research carried out by London & Country March 2017