Homeowners that have been held back from getting a remortgage could soon find help through easing of regulations. The Financial Conduct Authority (FCA) has released information on their intention to help homeowners that are trapped within their current mortgage deals. New rules will allow lenders to be more lenient with affordability checks on an individual basis. This will offer opportunities to the many thousands of property owners that have been held prisoner by their current deals and provide them with a remortgage possibility.

Remortgaging is suggested for most homeowners when their current mortgage deal ends. This is because once a mortgage deal term ends the lender will move the homeowner to a standard variable rate (SVR). The SVR is likely to be higher than a remortgage rate. The SVR can also easily be changed by the lender pushing the homeowner to accept the new rate or scramble for a remortgage.

Homeowners often seek out a remortgage with a fixed rate. The fixed interest rate allows the homeowner to pay the same interest rate throughout the term of the remortgage. There is no fluctuation of the interest rate or fluctuation of the repayment amount through the end of the term even if the Bank of England rate regulators hike the rate. This type of remortgage offers peace of mind to the homeowner that considers a set repayment helpful to their financial budget.

With warnings of a possible interest rate increase again this year, following two last year, experts encourage homeowners to shop around and discover if a remortgage would be helpful. For those that have found it difficult to remortgage in the past, the future easing offered by the FCA could be the solution they have long sought to allow them to escape their current situation and have the advantage of a remortgage.