Remortgage lending has been lacking in demand as of recent. This despite the low interest rates attached to deals currently on the market. In comparison to what homeowners would have secured two or more years ago in an interest rate, remortgaging could offer substantial savings for those that are close to having their mortgage term end or for those that already have had theirs end and are now moved to their lender’s standard variable rate (SVR). 

Homeowners have reported in recent surveys varied reasons for remortgaging, including the main reason of saving money. Those that have sought out fixed interest rate deals are likely to do so to offer security in a lower interest rate for the months or years ahead. Some remortgaged to get cash into hand to support their household budget through an equity cash release remortgage. Yet, a large number noted that they had remortgaged to gain peace of mind while navigating the unfamiliar pandemic environment by lowering their monthly repayments. 

Also, popular while many homeowners are spending more time at home, remortgaging to update and improve the living space or property was also noted as a reason to seek out a remortgage. 

With the many reasons to remortgage offering not only financial but emotional benefits, it is thought that demand would be higher from homeowners. It appears that many are content to allow the simple transition to their lender’s SVR, but no one should be comfortable paying more than necessary when savings could be had.

Remortgage demand is expected to pick up in the last quarter of the year as homeowner’s payment holidays end on the 31 October. While demand might increase, the process could be slowed by any disruptions caused by influenza season and the pandemic impact. Therefore, it is encouraged by experts to start shopping early for those due to have their mortgage deal end soon. Those on an SVR should shop sooner rather than later to secure possible savings.

Remortgage shopping online is quick and simple, with many websites from brokers and lenders offering quotes to discover, review, and compare offers. Then the homeowner should find the path to beginning the remortgage process simplified and many sources of advice available if there are questions. 

The average savings per month with a remortgage reported by one major lender for remortgaging homeowners was over £200. Since the outcome of shopping for a remortgage could offer so much in savings, security, and peace of mind, it makes since to invest a bit of time to reap such important rewards.