Homeowners are seeking remortgages to escape paying more than necessary on their repayments. Finding a low interest rate could help some to save a substantial amount of money. When a homeowner’s current mortgage deal ends and they do not remortgage they are moved to the lender’s standard variable rate (SVR). Experts are warning that for those that have had their mortgage deal end and those that are close to having theirs end that moving to a SVR could be risky.

According to some reports, a SVR could be double or more the level of interest rate that a homeowner could be used to paying. Rather than paying so much more on a higher interest rate, experts encourage homeowners to shop around for a remortgage and discover what savings could be found.

Homeowners have been showing strong demand for remortgages all year and according to a recent report from LMS the most popular remortgage product is one with a five year fixed rate.

In May, 97% picked a fixed rate remortgage product. Of the remortgage products, the 5 year fixed rate remortgage products were chosen by 44% and 39% chose a 2 year fixed rate deal.

Chief executive of LMS, Nick Chadbourne, remarked, “Last month saw a sharp increase in remortgage volumes, increasing from 52,745 in the previous month to 53,624.

“April and May have been recorded as the busiest months of the year for product expiry rates, for the last two years, so these numbers fall in line with market expectation.

“Current volume levels now sit at a 12-month high, revealing that despite wider uncertainty, the market is resilient. Homeowners are continuing to take advantage of interest rates at near record low levels, just 0.5% above the lowest recorded.

“Almost half of borrowers are now opting for a 5-year fixed rate product, and once more this trend carries on from what we’ve been seeing over the last couple of months. “It will be interesting to see if this continues throughout the second half of the year.

“As we move into summer, both new enquiries and completions are likely rise, delivering a surge in demand for mortgage brokers, lenders and conveyancers.”