Remortgaging could be one of the essential financial health choices that a homeowner could make.  Choosing to take the risk of letting a current mortgage end and then converting to a lender’s standard variable rate (SVR) rather than seeking out a new deal could be a dangerous game.  Lenders can quickly make a change of their SVR pushing up the cost of a mortgage repayment, but switching over to a new remortgage deal is going to take time.  Not to mention, the remortgage deals available to homeowners today may not be offered once a homeowner makes the decision to switch.

Lenders have been required since April to follow the new Mortgage Market Review (MMR) that was put into place to prevent irresponsible borrowing for remortgages and mortgages.  Now when a borrower is seeking out a remortgage or mortgage they will be required to share more detailed information about their spending and saving habits.  Lenders will use this information along with other personal data to determine if a borrower can afford the deal.  A stress test will also be required to determine if the borrower is capable of handling the loan in the event that interest rates increase. 

Experts have cautioned borrowers that remortgage and mortgage processes are now more in depth and will require more time and patience to complete.

There are many long term fixed rate remortgage deals on the market.  Though lenders are expected to start pulling their cheapest deals soon, due to the strong demand from homeowners, it has yet to occur.  When it does, it is unlikely that the interest rates will reach such a low historic level again unless another economic crisis occurs and the government has built in preventive measures to assure the chances are unlikely.