Being loyal to one’s current mortgage lender is understandable. They gave the opportunity to buy the home, or remortgage. They gave the approval and made it possible. Also, there is the comfort and lack of stress in staying loyal rather than considering a change in lender. However, experts encourage homeowners to highly consider leaving behind loyalty to their lender and in doing so, they will likely find savings and yet another lender in which to build a relationship.

When a mortgage term ends, the homeowner could remortgage or allow their lender to move them to their standard variable rate (SVR). Actively seeking a remortgage will offer lower interest rate deals in comparison to a SVR and there is the opportunity to choose the type of loan such as a tracker or a fixed rate.

Rather than seek a deal from the current lender, homeowners should take advantage of competition and discover what offers are available in the lending market. Lenders are looking for the attention of borrowers and their deals will reflect the effort to gain new customers. This is why it is worth the effort to shop for a remortgage and compare.

Because lending rates are much higher than just years ago, finding the best deal among offers is important. It helps the homeowner from paying more than necessary. Of course, there are other things a borrower may be interested in as well as saving money such as the length of term or type of loan.

Luckily, shopping for a remortgage is simple and fast to do online. In fact, it could be a one stop shopping experience by visiting the website of a remortgage broker. Doing so could put numerous quotes from a variety of lenders in front of the homeowner to review and compare. Among the remortgage offers from brokers could be exclusive deals. Lenders often offer deals through brokers that they do not offer directly to borrowers which makes shopping at a broker site a smart strategy.

Homeowners could also go from one lender website to another to gather quotes to compare, but they should not ignore the possibility of broker exclusive deals as they shop online.

Homeowners nearing the end of their current mortgage term should definitely shop for a remortgage, but so should homeowners moved to a SVR and even those not near the end of their term. Knowing what deals are currently available is valuable information for any homeowner. 

A concern exists for homeowners coming to the end of a two-year fixed rate deal this year. Their current rate will end, and they will face vastly different rates and repayments. Affordability could become an issue. 

In 2022, the standard base interest rate of the Bank of England was rising from the once historically low rate that was almost zero at 0.1% until December 2021. By April 2022, the rate had increased to 0.75%, The current base rate is 5.25% which shows the difference in what mortgage and remortgage rates were two years ago compared to now. Of course, that is the base rate and lender rates would be likely higher than the Bank’s rate.

Overall, shopping for a remortgage provides valuable information to homeowners and could lead to the best deal for them. Not shopping could leave them paying more and losing out on savings. It is fast, simple, and takes little effort for such a valuable wealth of information.

Once remortgage quotes are acquired, homeowners should review the offers, and experts encourage pushing aside loyalty to their current lender to discover the best deal for them. 

Also, in reviewing quotes, homeowners should not be blind to offers that are not the lowest interest rate. Fees are generally higher for the lowest rates, and choosing a slightly higher rate could come with a substantially lower fee. Taking into consideration the entirety of a remortgage such as the interest rate savings as well as any fees involved allows the borrower to truly compare the deals and determine the best overall savings.

Getting a remortgage with a new lender could seem daunting, but it is actually quite simple. Also, learning the advantages of remortgage shopping offers a smart go to strategy that will last a lifetime and could bring peace of mind deal after deal.