More home-owners should be asking should I remortgage?
There are many reasons why lenders answer yes to borrowers asking should I remortgage?
Many borrowers remortgage to get a lower rate. It is estimated that 1 in 5 borrowers are paying over the odds by staying on a lender’s SVR which is usually around 2 per cent higher than the most competitive new deals. Those considering should I remortgage? could save up to £1,200 according to CML figures. Those on variable or interest-only mortgage rates are likely to see their monthly repayments increase as rates rise due to increase interbank lending costs. Borrowers switching to a fixed rate deal will benefit from set monthly repayments which will not increase when interest rates rise.
Remortgaging is still viewed as a favorable decision in the UK, positive reasons for remortgaging remain the same and should not be ignored any longer. It may be time for borrowers to put an end to the wait and see game and as their mortgage deal ends seek a new remortgage deal. Remortgages are still attractive but if problems with the UK's economic recovery increase then lenders rates will rise.
Often many borrowers who ask should I remortgage? do not listen to the advise given and stay on their lenders un-favourable SVR. Home-owners on a tight budget should heed the warning that a more cautious outlook will lead lenders to change their variable rate upward, and pull their best remortgage offerings.
