Homeowners can no longer mortgage and then wait out the end of their deal content to be making their monthly repayments.  Homeowners should get acquainted with their current mortgage deal and learn all they can about how the deal is impacting their current financial health as well as what could occur in the future.  By being better informed they can make educated decisions that can make a major difference for their current budget situation as well as for in the long term future.

Many homeowners are totally unaware as to when their mortgage deal will end or has ended.  Once the deal ends then the homeowner is converted to the lender’s standard variable rate (SVR) if they do not remortgage.  This is considered a risky interest rate to be associated with since the lender can raise the SVR when they want independent of the Bank of England’s Monetary Policy Committee (MPC).  In other words, they can raise their rates even if the MPC does not.  Some recently gave notice that they will indeed be raising their SVR levels.

For the homeowner unfamiliar with their current mortgage deal an increase could come as a surprise.  That could put a homeowner in a difficult situation and a rush to get a new remortgage will be on their mind.  Yet a rush to remortgage should be avoided for it should take careful consideration as to which deal is the best rather than a hurried decision into a remortgage deal.  There are very good remortgage deals available but a homeowner may have to shop around to find them and they should be prepared to do so.