Once a home buyer becomes a homeowner, they likely want little to do with the consideration of loans, mortgages, or interest rates. They have handled that process and want to put it behind them and enjoy their new journey as a homeowner. However, homeowners should make it a habit of shopping for a remortgage. It takes only minutes to shop online for a new deal. At the very least, the result will bring valuable information, and the biggest reward would be the opportunity to save money with a lower interest rate. 

For a one stop shopping experience, borrowers could shop online with a remortgage broker. Quotes offered to the homeowner could come from a variety of lenders and might include exclusive deals from lenders that are not offered directly to borrowers. Borrowers could also visit individual websites of lenders to gather quotes. The benefits of remortgaging should not be ignored, especially by borrowers wanting to avoid paying more than necessary and looking for peace of mind with their likely largest debt, a home mortgage.

For home buyers, before purchasing it could be helpful to understand how one’s repayments could change as interest rates lower or rise in the future. By shopping with a remortgage broker and obtaining several quotes at one time from different lenders, a buyer could determine just how different their repayments could be if the economy changes at the time their chosen mortgage term ends.

At the end of a homeowner’s mortgage term, they could choose to remortgage. If they don’t, their lender will transition their loan to the lender’s standard variable rate (SVR) and experts encourage homeowners to avoid taking on a SVR. A remortgage could be much cheaper with a lower interest rate than a SVR. In fact, a SVR could be double or more the interest rate of a remortgage.

Asking a lender when obtaining a mortgage what the difference in a repayment will be in the future with one-point higher interest rate or one-point lower could offer insight for how to prepare for the future. One might consider the savings available should interest rates drop when their mortgage term ends. During times of savings, it could help to set money aside for when higher rates occur in the future.

For instance, those homeowners who mortgaged in 2021 with a two-year fixed rate deal would have had access to historically low-interest rate mortgages. The Bank of England’s standard base interest rate was only 0.1%. Mortgages were offered at rates near 2.0% or even lower during that time period. By 2023, the standard base interest rate of the Bank was 5.25% with lender rates reflective of the Bank rate at levels of 6.0% to 8.0% or more. It took only two years for the rates to change drastically, of course there were unusual circumstances with a global pandemic having impacted the economy and forcing low interest rates, but it was a real circumstance that homeowners had to financially navigate.

Home buyers should also be aware that remortgages are not only about saving money by assuring they have the best interest rate possible. There are other opportunities available such as choosing an equity cash release remortgage which allows a homeowner to cash out their built-up equity. They can use the money for any expense they wish, with many homeowners upgrading or improving their home to build more value and thus more equity back into the property. 

There are also choices in remortgages such as fixed rates, tracker rates, and also no interest remortgages, while a SVR is simply variable and could fluctuate quickly creating financial difficulty when rates are rising. 

Often there are misconceptions that a remortgage will make you owe more money, but a homeowner can remortgage simply for the amount of debt they owe, but some will choose to remortgage while borrowing out more money to help with expenses. It is up to the homeowner, and exploring what offers are available is simple to do by shopping online for a remortgage. Once quotes are obtained, it is simple to review and compare the quotes to find the best remortgage deal opportunity is best.

Knowing the benefits of a remortgage is helpful to understand before one becomes a homeowner. Then the choice can be made to periodically shop online and prepare ahead for what choices could be considered when a mortgage term ends. Shopping online for a remortgage is a smart strategy that is quick and easy to put into practice and the information obtained could prove to be extremely helpful throughout the years ahead.