Demand for a remortgage has been weaker than expected in the last quarter of the year. The expectation was that homeowners would be aggressive in seeking out a low interest rate for a long term to save money. However, remaining low interest rate offers and low standard variable rates offered by lenders have left mortgage holders content, even with warnings of interest rate increases due next year. Those that can benefit are the ones that decide to prepare and seek a remortgage while the remortgage offers are low, those that wait may lose out.

Because the demand for remortgages is low, lenders are in a competitive mode to gain the attention of borrowers. This trend will not remain for long due to changes in the UK economy, global lending, global economic conditions, and tightening of lending.

Some lenders have in the past weeks offered remortgage deals with interest rates lower than what has been offered in years.  While others have discounted fees and offered free valuations and free legal work.

Because there is more to consider in a remortgage than a low interest rate, homeowners are encouraged to also look carefully at fees and other costs associated with a remortgage deal. Only by taking into account all costs to compare to the savings will the real benefit of a new deal be revealed to the borrower.

Homeowners should also consider the benefits of a remortgage beyond the initial savings. Some remortgages would offer cash from the deal that could be used to fund needed expenditures, pay for a long awaited holiday next year, pay off debt, or pay for refurbishing of a home to increase the property’s value.

Saving money on repayments could offer a year long, or years, of a lower household budget which offers relief from stress to meet demands of debts and expenses.

Seeking out a remortgage deal while interest rates are low, before lenders increase their interest rates, could offer long term benefits as well as short term gains.