There is a current rush to remortgage. The latest meeting of the Bank of England’s Monetary Policy Committee (MPC) pushed the standard base interest rate up by 0.50% to 5.0%. Lenders had already begun to pull their cheapest products before the meeting, but afterwards there were even less available deals on the lending market to choose from for home buyers and homeowners. Now the forecast is for another rate hike of 0.50% and for further rate hikes beyond.

Many homeowners are coming to the end of their mortgage term this year having chosen a two-year fixed rate deal when interest rates were at an historical low. The calendar has moved forward, and their terms have already ended or will before the end of this year.

Experts are encouraging homeowners to consider the opportunities of a remortgage and avoid paying more than necessary. While historical low interest rates of two years ago are no longer available, there are ways to save. 

When a homeowner comes to the end of their mortgage term, they have the choice to remortgage or be moved to the lender’s standard variable rate (SVR). Experts encourage homeowners to bypass the SVR in favor of a remortgage to save money. The SVR is usually higher than what could be found with a remortgage and might even be double or more the rate level which would mean more money spent when savings could have been found with a remortgage instead.

With a remortgage, a homeowner could save more by shielding their budget from further rate hikes. By choosing a fixed rate remortgage, the interest rate will be locked in and despite any further votes by the MPC to increase the base rate, the homeowner will pay their same repayment until their then current term ends.

Preparing for further rate hikes by choosing a fixed rate remortgage is a popular choice of homeowners.

Homeowners already moved to a SVR are certainly encouraged to shop for a remortgage, but those not close could benefit as well. Rather than wait until their term ends and perhaps face higher rate hikes, some homeowners are choosing to take on a penalty fee to end their term early. This allows them to choose from current rates instead and likely save more if forecasts are for future increases.

Homeowners have many choices such as choosing to remortgage rather than allow a SVR, to choose a fixed rate to guard against rate hikes, and for some the choice to remortgage early is a smart strategy. A homeowner could also choose to cash out their built-up equity to put cash into hand with an equity cash release remortgage.

The many opportunities available in remortgaging are why experts are encouraging homeowners to consider shopping for a remortgage sooner rather than later. 

It is easy and quick to shop for a remortgage online. Visiting the website of a remortgage broker could offer the homeowner exclusive deals from lenders not offered directly from a lender to a borrower. Also, remortgage brokers work with many lenders for the benefit of the homeowner. Visiting a broker website could put numerous quotes in the hands of a homeowner to review and compare. Another way to gather quotes would be to go from website to website of remortgage lenders to get quotes.

There are only days before the next MPC meeting. Shopping for a remortgage could offer relief from further rate hikes and higher repayments. This is especially true for those on a SVR or other type of loan that could impact a homeowner’s budget due to base rate increases. 

The weekend offers a great opportunity for a homeowner to shop for a remortgage. Rather than put it off and possibly miss out on the ability to save money, and perhaps a substantial amount of savings, it should be made a priority, at least for those that seek to save money. 

The next meeting of the MPC is scheduled for 3 August.