Homeowners could be paying more than necessary every single month due to their lack of obtaining a remortgage. According to a recent report by TSB Bank, the average homeowner could save over £2,000 this year by remortgaging to a fixed rate product connected to today’s interest rate offers. The average monthly savings reported of over £160 per month could certainly assist many households, but the research shows that 89% of homeowners have not considered a remortgage.

The report also indicated that while the monthly mortgage payment is the largest outgoing expense for 84% of homeowners, 29% aren’t aware of the amount of their mortgage repayment that is in interest each month.

Due to the current low interest rates available from lenders and brokers in comparison to the interest rate levels available when homeowners mortgaged two or more years ago, the savings with a remortgage could actually be more than the average and end up being a substantial amount. 

Many reasons were offered as to why, with savings possibility, homeowners were not considering a remortgage. Some of those reasons were associated with being unaware of the savings possible, not thinking their current rate was high, they thought there would be fees that would be costly, or even that the process would be too stressful in the current state of things.

However, many of those reasons are not actually something that are true or should put off a homeowner to at least shop around and gather information as to what savings are available. Brokers could be helpful to the homeowner that would rather have someone work for them to find the best deal, the best lender for their situation, and perhaps an exclusive deal not offered to the general public.

In another report in 2020, it was revealed that homeowners that had remortgaged felt a sense of stress relief. The ability to save money, secure a fixed rate to protect them from rising rates, and in some cases put cash into hand when they converted their built up equity into cash, offered a peace of mind of sorts that helped their financial outlook.

Rather than miss out on the benefits of a remortgage, experts encourage homeowners to shop online and gather information to discover if the opportunity is right for them. It can easily and quickly be done online and the information gathered could offer encouragement and motivation to take action as many other homeowners have done to save money and secure a rate that could also offer peace of mind.