Why choose to remortgage and switch deals?
Remortgage was once a far more common thing. Prior to the UK credit crisis and the introduction of lenders ultra low mortgage rates, the majority of home-owners on reaching the end of their mortgage deal, would be looking around to switch products and secure a better rate.
This situation changed when lenders brought in very low SVRs which meant it was no longer necessary to switch products. Home-owners as a result became very complacent about making a regular review of the rate they were paying. Remortgage products reduced in number as demand declined.
The BOE rate remains at 0.5 per cent but mortgage rates are increasing. Home-owners have been subject to recent SVR increases, tightened lending criteria and changes to interest only mortgages, which has prompted many to re-evaluate their deal.
Searching for a better rate to reduce monthly spending is now the main reason for choosing to remortgage.
With varying rates, terms and mortgage criteria, looking for a deal can be a complex process and one in which it is easy to make a mistake.
Headline rates are no longer the main factor in deciding what is a good deal, overall terms need to be looked at and fees need to be factored in.
When considering a remortgage home-owners are advised to enlist the help of 'whole of market' brokers Deal Direct. We will source the most suitable product and will only recommended a deal that we consider to be in your best interest.
Contact one of our skilled remortgage advisers today and we will help you to save money.
