A recent report from Moneyfacts reveals that more homeowners are expected to remortgage in the coming months. Rather than paying more than they have to, the homeowners will shop for a remortgage that offers a lower interest rate, a fixed rate to protect them from rising rates, and for the ability to offer peace of mind in the days leading to Brexit.

The report showed that homeowners taking out a two year fixed mortgage in 2017 and are now drawing close to ending their mortgage deal could benefit from a remortgage deal. Those that do not remortgage and allow their mortgage to switch to their lender’s standard variable rate (SVR) could find that rate more than doubled compared to what they were paying.

The FCA is also easing lending for homeowners that are held hostage to their current mortgage deal and cannot remortgage. This will allow those that were previously shut out to secure a deal that will help them find savings and security with a remortgage.

Moneyfacts’ finance expert, Darren Cook, remarked, “Two years ago, the average two-year fixed mortgage rate fell notably, reducing from 2.31% in January 2017 to a record low of 2.20% in October the same year.

“The following month, the Bank of England increased base rate from 0.25% to 0.5% and the average two-year fixed rate increased to 2.35% by December 2017. In comparison, the average two-year fixed rate currently stands at 2.47%.

“Over the next six months, it is likely many mortgage borrowers who secured a two-year mortgage deal two years ago may see their record low interest rate expiring and will have no intention to revert to a rate that could see their interest rate double overnight.

“This significant increase in motivation for borrowers to switch mortgage deals, and the subsequent potential increase in remortgage business as a result, may push some mortgage lenders to marginally cut rates over the next few months to maintain a competitive edge.”

Experts encourage homeowners that are near having their mortgage deal end this year, or those already moved to their lenders SVR, to shop for a remortgage sooner than later. There are very attractive deals being offered and no one should pay more than they have to on their mortgage debt.