Remortgaging is when homeowners look to move from one mortgage deal to another, when a term comes to an end. In many cases, Britons choose to stick with the same lender, however some will opt to move to a new mortgage provider. A mortgage is often a significant financial commitment which lasts across decades.
However, remortgaging can often save customers money, and thus it is vital to consider the options at hand.
Most mortgage terms last two to five years, so Britons will be required to reevaluate and assess their finances at regular intervals.
In so doing, they will be able to find the best mortgage deal for them, and potentially cut costs in the process.
But lockdown has caused uncertainty for many people, particularly with their finances.
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“The large majority of the time, if you move onto SVR, it is highly likely you will pay more than you would do by fixing the mortgage on a new fixed rate term.
“So regardless of how long is left on your mortgage, you should be looking around.”
Mr Hayes highlighted that many people choose to fix their mortgage every two or five years, as they search for certainty.
In this case, if people are approaching the end of their fixed rate period, they should speak to a broker to find out more.
A broker can often provide a comparison of the market to help individuals know which deal is likely to suit them.
However, despite the uncertainty of COVID-19, it could be a good time to look for a new deal.
Mr Hayes added: “Rates are extremely low at the moment, and you could get yourself a good deal.
“Firstly, switching to another fixed rate deal could help you to save money in comparison to SVR, but it is also worth noting moving lenders could also help you to save money.
“One lender could be offering a significantly better deal than another, so checking this out is vital.
“There is no logical sense to hold off on a remortgage if you are coming to the end of a fixed rate, especially as fixed rate deals are awesome right now.”
Before remortgaging, the Money Advice Service states it is important to consult an advisor for further assistance.
Checking the costs, and potentially reducing a loan-to-value product could help homeowners get a better rate, and thus potentially a better deal.