Homeowners that either chose not to or could not get a remortgage when their current mortgage deal ended were converted over to their lender’s standard variable rate (SVR).  In the beginning of the year homeowners likely noticed little difference as they sat on their lender’s SVR.  Despite a SVR rate being risky due to the lender’s ability to raise or lower the rate with little notice and without being tied to the Bank of England’s standard base rate many homeowners found little motivation to seek a remortgage. 

However lenders began raising their SVR levels and homeowners began to take notice.  Motivation was no longer the push to remortgage but rather escape from rising SVRs.  According to data from the Bank of England the average standard variable rates have reached 4.2% and yet there are remortgages on the market far below that and at loan to value levels much better than were previously available.  In recent weeks lenders have been cutting their cost of fixed and tracker mortgages to levels not seen in decades and some historically low.

There are actually remortgages to be found below 3% and others near that amount, while not as low, have incredibly good freebies and low fees or no fees associated with them.  Either by shopping around or by using a remortgage broker, homeowners currently on their lender’s SVR or close to their mortgage deal ending are likely to find they could save money and avoid rising SVR levels with a remortgage.  Homeowners should put aside any loyalty to a present lender and be willing to switch for a better interest rate and the security of a fixed or tracker remortgage.