The Bank of England’s Monetary Policy Committee (MPC) has raised the standard base interest rate during the last three consecutive meetings. The cost of borrowing becoming more expensive each time the rate increased. Because of this, homeowners have been seeking to escape paying more than necessary by shopping for remortgages. Through a remortgage, not only could a homeowner discover a low interest rate in which to save money, but other benefits as well.

Many homeowners are choosing fixed rate deals in which to lock in their interest rate for the duration of their term. This builds a safety net financially by allowing the homeowner to avoid rising interest rates, something that is expected to occur many more times this year.

Another benefit many homeowners have available is cashing out their built up equity. A lot of homeowners have gained a substantial amount of equity in their home due to rising property values across the UK. By shopping for equity cash release remortgage deals, a homeowner could turn their equity into cash and have money in hand to put against any expense they desire. It could be used to pay down debt, to pay for an unexpected expense, invest back into the property with upgrades and improvements, or build an emergency fund.

Then of course, many homeowners are seeking a remortgage simply to avoid being put onto their lender’s standard variable rate (SVR). At the time a mortgage term ends, the homeowner could either remortgage or allow their lender to move them to a SVR. When interest rates are declining, it could be an easy strategy to take on a SVR due to the lender switching the rate fairly quickly when and if it declines. However, during times when rates are increasing, it could be risky for households with strict budgets. Peace of mind against needing to rush to remortgage or paying higher repayments could be found by escaping an SVR with a remortgage deal.

Also, SVRs have at times been connected to rates twice the level as what was available with a remortgage, meaning a homeowner would be paying twice as much in interest on their repayments. Of course, it could even be more than double in some cases.

To avoid paying more than necessary, a homeowner could simply shop for a remortgage online. It is easy to get quotes in hand to review by visiting websites of remortgage lenders. Going from site to site and obtaining quotes is a simple way to discover possible deals. Visiting a remortgage broker’s site could be even quicker, as it is practically a one stop shopping experience due to the ability to obtain quotes from many lenders to compare and review from a broker’s website. Also, brokers often have exclusive deals which could be the best remortgage offer for some homeowners.

Experts are predicting that due to rising inflation, which could reach 8.0% in spring, the MPC rate could very well be increased numerous times this year putting more of a burden on households already struggling due to inflation, rising fuel and energy costs, and impact from the pandemic. For homeowners, there could be relief through remortgaging and all homeowners are encouraged to at least shop for a remortgage and review whether they could indeed find savings and perhaps stress relief due to escaping the interest rate increases likely to occur.