The decision to remortgage has perhaps never been so confusing as to whether one is better off doing it or waiting it out. Could the interest rate increase soon and have you paying more than you need to? Could remortgaging then save you money and be the right decision? Perhaps because of Brexit, interest rates will be cut again and then that could have you missing out on what could be lower rates offered than what are available now? To remortgage or not to remortgage is the question that many homeowners can’t quite find the answer to and it seems it is getting even more confusing.

On the one hand, a homeowner that has their mortgage deal end is moved to their lender’s standard variable rate (SVR) if they do not remortgage. That means the property loan is now attached to what is often considered a very risky interest rate. The keyword being variable in the SVR that is now the homeowner’s interest rate. That rate can fluctuate not only in tandem with the local UK economy, but global as well. It is after all, a rate that is the lender’s choice. When the need arises, the lender will increase or decrease the rate as they see fit.

Should the rate increase then the homeowner has a tight window in which to take on the added expense attached to the repayments or seek out a remortgage. At that time, when a remortgage is desperately needed to escape higher payments, lending could tighten. Qualifications to remortgage could be adjusted or the homeowner’s situation could actually change and make qualifying for a remortgage tougher if not impossible.

There is always that chance that a SVR could be lower than the interest rates offered with remortgages. It hasn’t been that long ago that many homeowners found that to be the case. Experts now are revealing data that homeowners that mortgaged with a fixed rate two or more years ago could find their lender’s SVR is double or more the level they were used to paying. Remortgaging in that situation is likely a no-brainer. Remortgage and find a lower interest rate rather than pay more than is needed.

There is the dangerous game of sitting on the fence to see what the Bank of England’s rate setters, the Monetary Policy Committee (MPC) will do with the standard base rate once Brexit occurs. Will the economic conditions warrant an increase in the rate that now stands at 0.75% or will rates be cut?

Remortgaging now versus later could have you discovering a lower interest rate than offered now or a higher one. The decision to sit on the fence could have consequences and it is mulling over the impact of the consequences and deciding what risks could be absorbed that will help a homeowner discover which stance to take. To wait or take action.

There is counseling available in remortgaging that could help. Experts are available to help a homeowner walk through the scenarios. Perhaps the easiest route to take is to do online shopping and discover what remortgages are available now. What savings are to be found with the remortgages available? That information could offer the assistance to better make the decision as to whether to remortgage now or wait it out.