Now the path to a remortgage is becoming the only escape for homeowners from rising interest rates.  Some lenders have either already raised their standard variable rate (SVR) or they have given notice that they will be doing so soon.  Experts say it is only a matter of time before others do the same.  This impacts the homeowners that have had their current mortgage deal end and have been converted over to the lender’s SVR.  If a homeowner chooses not to remortgage then they are moved to the risky SVR and await the lender to raise or lower their rate despite any decision by the Bank of England’s Monetary Policy Committee.

The only way to escape these rising SVR levels is to remortgage.  There are things a homeowner can do to get ready for a new deal.  Here are a few tips to consider:

·         Determine if your mortgage deal has already ended or when it will end.  If it has ended then you are free to move to a remortgage.  If it has not ended you should determine what penalties will be incurred by ending the deal early to get a remortgage.

·         Estimate your equity level to get an idea as to what remortgage deals are within your reach.  Your equity level can be determined by finding out the current value of your home and subtracting what you owe in mortgage debt.  Your equity level will not only determine the loan to value levels you can match for a remortgage but will determine the level of interest rates you can obtain.  A high equity will qualify for the cheapest interest rates.

·         Shop around for the best remortgage deals.  The shopping can be done quickly online but phone calling and walking in to a lender is possible as well.  Remortgage brokers will do all the shopping around for you if you choose to work with one of these remortgage experts.

·         Discuss the remortgage deals you are considering at length.  Know everything you can about the deals including any fees that will be assessed, future opportunities to overpay, and if there will be penalties involved by ending the deal early in the future for a remortgage.  Be especially weary of fees that may make a cheap interest rate less of a savings once the remortgage deal is considered as a whole.