It is the last weekend of the month of October. This is an obvious marker that the holiday season is coming quickly upon us and a new year will be a part of it. The year will close out with more hope for a better economy ahead, with at least most if not already feeling some relief will soon, as inflation has dropped below the target rate. Wage growth, lower inflation, and the expectation of cheaper borrowing costs are promised ahead. However, to make the most of opportunities available now and into the next year, it will require action and for homeowners the motivation to save should inspire them to take advantage of current opportunities.

There is one thing any homeowner could do this weekend before the final days of the month click off the calendar. Shop for a remortgage. One small and quick task could make a major difference. 

Experts encourage all homeowners to shop for a remortgage no matter where they are in their mortgage term. If their term has already expired and the lender has moved the loan to their standard variable rate or SVR, then shopping for a remortgage is a smart strategy and could stop the homeowner from paying more than necessary. The same could be said for a homeowner in the final months of their term, those with plenty of months left and even those that mortgaged only last year. 

Those on a SVR will when shopping for a remortgage discover they are paying more than they need to be paying and that a new deal could save them money. A SVR could be double or more the interest rate that could be found with a remortgage. Also, avoiding the higher rate and more expensive variable for a lower fixed rate locks in the savings for the new term. Therefore, such a choice could bring savings, and financial peace of mind. 

Those that are nearing the end of their term will find shopping for a remortgage sooner rather than later a smart move. Most homeowners have the ability to remortgage up to six months early without having to pay a penalty fee for ending their term early. They could choose a deal and wait to determine if it stays the best choice for their needs or a new one comes along. It is when interest rates are low and expected to rise that taking action soon is something to seriously consider. Choosing a low interest rate before they increase could offer a substantial savings.

There are also homeowners that might consider taking on a penalty fee to escape their current rate for a lower one or to simply change the type of loan they have such as might be the case for someone on a variable or tracker that believes a fixed rate is now a better decision.

This would have been a smart choice over the period of 2020 to the spring of 2023. If one had a time machine to go back and remortgage, it could save thousands of pounds. The Bank of England’s Monetary Policy Committee (MPC) responded to the impact of the global pandemic by lowering the standard base interest rate to almost zero at 0.1% in March 2020. By December 2021, the base rate was on a steady climb as each MPC meeting resulted in a majority vote to increase the rate.

The base rate slowly increased throughout 2022, and by August 2023 it reached the peak of 5.25%, a fifteen year high. The base rate remained steady throughout the rest of 2023 and until August of this year when the first cut since March 2020 took the rate to 5.0%. 

In less than two years, the base rate grew from 0.25% in January 2022 to 5.25% in August 2023. The difference it could have made to choose a long-term fixed rate in January 2022, or even December 2021 when the base rate was still 0.1% is tremendous. 

Certainly, choosing a long-term fixed rate back then to lock in a lower rate and avoid the higher rates that resulted would bring more than enough savings to justify taking on a penalty fee to end a deal early.

Of course, there is no time machine available, so homeowners must make the best decision possible with the information they have and that information, that could be so valuable to them, is only a few clicks away at the website of a remortgage broker or lender. There is no commitment required in getting quotes from a broker or a quote from a lender. 

The quotes obtained hold information to help make a quick decision off of a SVR, to prepare for a new deal in a few weeks or months, to decide if the rates now might be better than next year, or simply to figure out how to prepare for the rates that might be available when one’s term does expire in the future.

Currently there are lenders increasing rates and others cutting rates. The final days of the month are a good time to take action and shop for a remortgage online and with the information obtained set up a strategy to make the new year one of financial stability and growth after years of uncertainty.