There are many homeowners that have been held prisoner by their current mortgage. Without the ability to remortgage, they have their loan moved to their lenders’ standard variable rate (SVR). Because the interest rate connected to SVRs are higher than mortgage offerings in years past, homeowners are forced to pay more than they would have to if they could remortgage. Yet, there could be relief soon and savings would be available.

The Financial Conduct Authority (FCA) is expected to put into place an easing in lending that will help homeowners that are being held hostage to their current deal. The easing is expected to help a possible 140,000 homeowners.

Andrew Bailey, chief executive of the FCA reported, “We want to remove potential barriers in our rules to these customers switching to a cheaper mortgage. To help these customers, we will consult on changes to our responsible lending rules, with the aim to deliver a more proportionate affordability assessment.”

Those homeowners that are looking for a remortgage will find that the interest rates associated with SVRs are motivation to shop around and take action. Savings are to be found as the average interest rates from years back when mortgages were secured are half of what the average SVR rate is of now.

Remortgage products are abundant and attractive rates are available, as are incentives in some deals. Experts encourage homeowners to shop around for a remortgage and give themselves plenty of time to discover the best deal without pressure by shopping early.