At any given time there are homeowners facing the end of their mortgage deal. When the term on their mortgage ends they have choices, one is to take action and get a remortgage and the other is to do nothing and allow their lender to move them to their standard variable rate (SVR). Not too long ago moving to a SVR wouldn’t have been so bad as they were attached to relatively low interest rates. That is no longer the case as some SVRs are double the rate of a homeowner’s mortgage interest rate if they mortgaged two or more years ago.

It could be easy to compare the remortgage interest rates offered today with that of one’s mortgage interest rate secured years ago and pass over any offers. Some SVRs are initially low and it might not seem that bad, but in the long term not remortgaging could leave a homeowner feeling deep financial regret.

An SVR can fluctuate as to the needs of the lender. It is considered risky for those that would do best with a set fixed rate knowing what one’s repayment amount will be month to month, year to year, until a mortgage deal ends. In the event a SVR unexpectedly increases due to economic situations or to the direction of a lender, it can put a homeowner in a bind and a rush to escape the increased rates. Rushing to remortgage could leave a homeowner stuck, stressed, and paying more than they would otherwise have had to pay.

Look at remortgage deals offered not compared to what one was paying years ago, or even what one is offered in a SVR but rather what savings overall could be had through a new deal. A fixed rate could offer not only a low interest rate today, but secure one’s financial situation against rising rates in the months and years ahead.

There could be substantial savings available and the only way to find out is to shop around at what a remortgage could offer against a lender’s SVR. Throw loyalty to the wind and shop with many lenders or a broker which will connect with many lenders on behalf of the homeowner. Gathering information as to what deals are available will help homeowners secure the right deal for today and days ahead.