Homeowners are keen to remortgage these days more than in years past. At the end of a homeowner’s mortgage deal without a remortgage the loan is put onto the lender’s standard variable rate (SVR) and not so very long ago, a SVR was not so bad. It is usually considered risky to go on a SVR as it can fluctuate, and when rates are rising it could put a homeowner in a financial hardship to suddenly be facing higher repayments.

However, as the economy was recovering from the recession the interest rates connected to a lender’s SVR were low. It was not as risky. That has changed as the Bank of England’s Monetary Policy Committee (MPC) has increased the interest rate twice since the long standing historical low rate of 0.25% existed.

In two increases by the MPC the standard base rate tripled. No longer is it as financially comfortable to sit on the fence rather than remortgage. The standard base rate now stands at 0.75%.

According to experts, homeowners that mortgaged two or more years ago on fixed rates will find a SVR to be double or more the interest rate they were paying during their mortgage term.

For those homeowners that have had their mortgage term end and are already on a SVR it could lead to a substantial savings to remortgage. By shopping around, the information discovered could reveal just how much money could be saved. Since it is easy to shop around online, the quick options offered could help a homeowner take action to remortgage rather than risk their financial health to the uncertain future.