There are some homeowners that have the opportunity to start 2025 with savings in their household budget. Those that have come to the end of their mortgage term and were moved to the lender’s standard variable rate (SVR) are likely to find substantial savings through one simple process and it’s so easy to discover how much savings. The process to begin saving money is simply to shop online for a remortgage. A few minutes online at the website of a remortgage broker to obtain quotes will provide a wealth of information important to the homeowner.

Experts encourage all homeowners to shop online for a remortgage, not just those that passed over the choice to remortgage and have been moved to their lender’s SVR. Of course, due to the usual higher cost in a SVR, just by remortgaging, a homeowner is likely to save money. A SVR could be double or more the interest rate level of a remortgage. Also, with quotes, the homeowner will have quick insight into what types of remortgage loans are available as well as the interest rates offered.

There are homeowners looking for more than just a straightforward remortgage loan. Some are considering turning their built-up equity into cash for an expense they have or expect in the near future. The cash could also be used to increase the value of the property through upgrades or improvements and perhaps bring about more savings by making the home energy efficient, which could also increase property value.

The most popular remortgage is a fixed rate, so the chosen interest rate can be locked in and protect the homeowner’s budget from rising rates. Those that witnessed how quickly rates can change will be looking for security and peace of mind, for it was in December 2021 that the Bank of England’s standard base interest rate was only 0.1% and by August 2023 it had increased to 5.25%.

Considering that fractions of a point higher can amount to a considerable amount when the borrowed amount is in hundreds of thousands of pounds, it can make the difference between a homeowner being comfortable in their repayments to quickly getting into a space of questioning the affordability of their home.

The recent past has impacted homeowners, and most are seeking a fixed rate deal, but there are also those choosing a tracking rate or an interest only remortgage.

Remortgage shopping is not only for those looking to escape the more costly and risky SVR. Those coming to the end of their term in 2025 could feel less of a rush to remortgage by shopping now. They could choose to end their term early should they find their best remortgage deal and if they are within six months of their expiration date will not likely incur an early termination fee. 

The Bank’s Monetary Policy Committee (MPC) recently voted for the second time this year to reduce the base rate. The first came in August when the 5.25% base was cut to 5.0%. It was the first time since March 2020 a reduction was the decision of the MPC. In November’s MPC meeting, the rate was reduced a second time by 0.25% to 4.75%.

It is forecasted another rate cut or possibly two could occur next year. There is no need to wait until that happens however, as lenders are competitive currently and there are offers below the base rate with some dropping below 4.0%. 

If having more money in the family budget would be helpful, and if a homeowner wants to avoid paying more than necessary, then simply shopping online for remortgage quotes is the start to discovering how much of a savings is available. 

The financial outlook for the UK economy is optimistic, and to reflect that same outlook for one’s own financial future and budget, a homeowner need only spend a few minutes online to gather remortgage quotes to review and compare. Then it’s only a matter of narrowing down to the best choice and taking action to get all the savings possible for a more comfortable financial position in 2025.