Homeowners are being encouraged to consider a remortgage if they are close to having their current deal end. Without a remortgage, lenders will move a homeowner’s loan to their standard variable rate (SVR). According to reports, particularly one released by Moneyfacts.co.uk, it is reported that borrowers that mortgaged two or more years ago could face a SVR that is double or more the interest rate that the homeowner was used to paying.

Rather than paying more on a SVR, a homeowner could shop for a remortgage that offers a savings. With a fixed rate remortgage, a homeowner could gain peace of mind that they have a set interest rate should interest rates hike as most experts suggest will occur in the years ahead.

Those that choose to stick to a SVR are warned that the gap between what they paid on their past mortgage deal and the interest rate on a SVR could grow as days pass by due to the possibility of SVR interest rates growing. Since a SVR fluctuates it could leave a homeowner in a financial crunch with their household budget and would force a rush to remortgage. Then the homeowner could find the deals available aren’t as good as they are currently.

Homeowners also have the opportunity to discover very attractive deals when they start shopping on the market. Lenders are still competitive and are offering deals to gain the attention of homeowners.

Rather than wait out the situation and allow a mortgage to move to a lender’s SVR at the end of the current term, it is, as has been reported, a smart move to shop around for a remortgage. Gathering information will give the homeowner a clear idea as to whether a move sooner rather than later is the answer to saving money and not spending more than necessary in the years to come.