Are you paying too much on your mortgage?
A staggering £2.78 billion of interest being paid by people on the wrong mortgage deal...!
According to latest research by L&C Mortgages* 36% of UK homeowners are sitting on their lender Standard Variable Rate (SVR). The current average lender SVR is 4.40%. So when you took out your mortgage there is a good chance that you were given a fixed initial rate deal e.g. 2,3 or 5 years.
So at the end of the initial rate you will usually have been switched automatically to the lender’s Standard variable Rate (SVR) of interest.
If this is you will probably be paying a lot more interest on your mortgage repayments each month than you need to.
You are not alone. 4 million UK homeowners are in the same boat.
Remortgaging your home is simple and if you are a homeowner with a mortgage it makes a lot of sense to review your monthly payments
Why do people Remortgage?
The main reason is to keep monthly costs to a minimum.
1. Has your initial mortgage deal come to an end?
By switching to a better deal with a different mortgage provider, remortgaging could potentially allow you to benefit from lower interest rates and lower monthly mortgage repayments.
2. Are you looking to raise money?
By remortgaging you may be able to releasing equity in your home.
People often remortgage to provide money for:
- Home improvements
- New Kitchen
- New En-suite bathroom
- Consolidate other existing debts.
Remortgaging can be a good low cost way of paying for your new home project.
2017 set to be a strong year for remortgaging
2017 looks set to be another strong year for remortgaging after total remortgage lending in the UK topped £65.7 billion in 2016, according to research by conveyancing provider LMS.
This trend is likely to continue in 2017, with nearly a third of eligible homeowners planning to remortgage, as revealed in a survey carried out by TSB.
The impact of Brexit is likely to affect the market and could well lead to rising inflation and a squeeze on family finances, making remortgaging to cut monthly repayments an attractive option.
Inflation is on the rise
If you are thinking of remortgaging, it is advisable to do so now as lenders are likely to start raising their rates throughout the year as the full impact of Brexit begins to be felt.
Remortgaging is easy
Use our free remortgage calculator today.
*Research carried out by London & Country March 2017