When considering a remortgage, the majority of homeowners are seeking stability to their financial health. It could bring savings, it could bring a block against paying more than necessary, and it might just bring peace of mind. According to a recent study, it was reported that four out of five UK homeowners felt the current lending market has impacted their mental health. Two out of five homeowners have sought counselling due to the stress brought on them due to the current mortgage lending situation.

The survey conducted by Confused.com reported that over half of those polled are concerned about higher interest rates.

The Bank of England’s Monetary Policy Committee (MPC) has drastically changed the standard base interest rate in under two years. In December 2021, the MPC began the first of what would be fourteen consecutive meetings of increasing the base rate. In November 2021, the base rate was 0.1% and it now stands in November 2023 at 5.25%. 

Despite the MPC voting to keep the rate steady in the last two meetings held in September and in the first week of November, inflation is still more than three times the target rate of 2.0% at 6.7%.

After concern for the current interest rates, homeowners reported concern for the current economic climate and that is not surprising due to continued household budget strain from inflation, and also the recent report on an increase of unemployment. While there is little need to remind, it should be noted that the inflation issue came on the heels of the strains of a global pandemic that took its own toll on the budgets of homeowners.

Those that obtained a two-year fixed mortgage right before the base rate was increased in December 2021 are nearing the end of their mortgage term. Even into 2022 the base rate was more affordable than it is now. Those homeowners nearing the end of their mortgage term are going to have the choice to remortgage and those not doing so will be moved to their lender’s standard variable rate (SVR).  Avoiding a SVR is avoiding paying more due to a remortgage normally offering a cheaper interest rate as well as the opportunity to secure a fixed rate deal.

Most homeowners could secure a remortgage within six months of their term ending without a penalty fee. Some may choose to remortgage early despite a penalty fee to avoid possibly paying more when their term is due to end for there is still a possibility of another rate hike should inflation remain stubborn.

Discovering what remortgage opportunities are available is easy by simply shopping online. Visiting the website of a remortgage broker could put numerous quotes from a variety of remortgage lenders in hand to review and compare in minutes. Exclusive deals from remortgage lenders not offered directly to borrowers could also be found. Homeowners could also shop from website to website of lenders to gather quotes.

Whether a homeowner is already on their lender’s SVR or they are nearing the end of their mortgage term or they would be remortgaging early, shopping and finding a remortgage could save money. Securing a fixed rate deal and locking in a rate could offer a shield against rising rates and offer peace of mind during a difficult economy.

Homeowners considering a remortgage should not waste a moment without shopping online. Currently there is a competitive lending environment that could shift at any moment. Rates could quickly move upward, even without a vote by the MPC. As the risk to lending heightens, lenders will respond with higher rate offers. This could have homeowners missing out on the competitive rates of today. 

There is another MPC meeting in December, without one in January 2024. Should the MPC members feel pressured by inflation, another rate hike could occur, especially since the next opportunity to take action against a stagnant or rising inflation rate would be in February.

Homeowners need not worry or wonder what is ahead for them, instead they can prepare and build a strategy simply by shopping for a remortgage online and gathering helpful information. Then, if an opportunity presents that offers savings and peace of mind, by all means it would be advantageous to take action and secure the best deal for their unique needs as soon as possible.