Even with record low interest rates people are still choosing to remortgage their property. This means the market for residential mortgages remains competitive and there are still attractive deals to be had. It may still be possible to save money even if you are on your lender’s SVR.  Within the market at the moment we are seeing price wars between lenders who are actually battling to offer the most competitive rate. Also when you remortgage an option is to pay off part of your mortgage without penalty which can reduce prices.

Why Remortgage Your House?

We speak to people every day looking to save or raise money, or avoid moving home.
In the current property market remortgaging or getting a further advance to avoid moving home is becoming an option. It is not just because mortgage lending is by far the cheapest way of raising cash to fund an extension or improvements to your home in the short term with rates being so low. But rather people are reluctant to make a big move while the property market is static but still want to invest in their home or make it more practical.
Many people assume that with lenders SVRs as low as they can go for the most part, they are saving money. This is not usually the case even with ultra-low interest rates. If your current SVR is base +4% it’s more than likely your lender has current deals under 4%. If you have already paid part of your mortgage off there are also savings to be had on the amount you need to borrow. All things being equal you’ll save money by getting the lowest rate you can. Even although a new deal will have associated costs and redemption penalties , we will take these into account when calculating any savings.

Remortgaging is also a way to raise finance as it allows you to borrow money at a relatively low rate compared to a personal loan although you are adding the debt to the loan over the whole term. Some homeowners have what they see as surplus reserves of equity that they choose to use for other things.

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