First time homeowners that purchased their property in the last few years may have missed out on fully understanding the opportunity of getting a remortgage at the end of their current mortgage deal. Thinking that a remortgage is simply a way of cashing out equity and taking on more debt, they are oblivious to the fact that many homeowners not only release cash equity, but lower their debt through savings found in a lower interest rate. They also could be unaware of the risk of having been moved to their lender’s standard variable rate (SVR) if they did not remortgage at their end of their mortgage deal.

There could be some that do know about remortgages, but getting one is held back because of myths associated with a remortgage. Many think the process will be as lengthy and stressful a process as when they first purchased. The process could be far less time consuming and less stressful since the outcome of a remortgage doesn’t involve a yes or no answer to homeownership, but simply a solution to getting a new interest rate or fixing a rate for a longer term.

In the long run, the effort in getting a new deal could result in an important safety net for the homeowner. Securing a long term low interest rate before there is a change in the economy and lenders begin raising their rates could make all the difference in how a budget survives the ebbs and flows of the economic future.

Because new first time homeowners may be happy and content with their current low interest rate, they may think very little about getting a remortgage deal. Yet, at the end of a mortgage deal without a new one, a lender moves the homeowner to a SVR and that is risky because a lender could raise the rate with little notice in reaction to the global economy. This puts the homeowner in a race to secure a better deal in a remortgage or end up stuck in a costly interest rate.

Buying a home is the first step in being financially secure as a homeowner. The steps that follow will most likely be tied to remortgages throughout the time of paying off the debt of the major purchase. Remortgages, especially when there are low interest rates offered, are an opportunity to possibly find a lower interest rate and secure that rate for a long period of time, thus making the overall impact to a homeowner’s household budget less severe for many years.