Homeowners are being encouraged to consider the benefits of a remortgage. Those that are expected to have their mortgage term end this year will not be facing as friendly standard variable rates (SVRs) as those facing the same in years past. Not too long ago, it was not so bad of thing to just sit on one’s lender’s SVR after a mortgage deal ended rather than remortgage. However, interest rates have risen and now a SVR can be worrisome to a homeowner.

In less than two years, the Bank of England’s Monetary Policy Committee (MPC) has increased the standard base rate twice. The levels of increases were slight at only 0.25%, but those two increases tripled the standard base rate from 0.25% to 0.75%. For homeowners that have been enjoying a low fixed interest rate obtained two years ago or longer that much of an increase could result in a hardship if moved to a SVR.

When a homeowner chooses to let their mortgage deal end they are moved to the lender’s SVR, unless of course they remortgage. Homeowners can escape the higher SVRs of today by remortgaging. That action could save them from higher interest rates in the months and years ahead that would make an SVR even scarier.

Lenders are still offering very attractive deals and some with incentives to make them even more attractive. Experts suggest that homeowners shop around for a remortgage and that’s easy to do online. In shopping for a remortgage, a homeowner could determine if savings are available and how much of one over the life of the term.

Rather than just paying more than necessary, shopping for a remortgage could enlighten a homeowner on how to save money and allow them to escape the worrisome SVR that could tighten their family budget.