Remortgaging has seen a surge in January due to the availability of some great remortgage rates. Signs suggest that rates may rise in the future and so now could be a great time to take the plunge.
Research shows that many homeowners fail to realise that they could make significant savings by remortgaging and therefore ain’t make the switch.
Only 30% of clients eligible to switch actually plan do so with only a quarter of these will manage to do it this month. Most homeowners expect to save around £50 per month when in reality the savings could be double this amount based on a typical 2 year fixed rate mortgage if £100,000.
The research clearly highlights the untapped potential of remortgaging – just think of the difference it could make to your monthly finances! TSB found that, by remortgaging at a lower fixed rate, homeowners have been able to free up extra cash for a whole range of other uses: 39% would use the extra money to go on holiday (and 24% of those said they’d go on three or four holidays in the year), while 37% planned to use the extra money to overpay their mortgage, helping them become mortgage-free faster.
TSB saw a 27.5% increase in remortgage applications in 2016 compared with 2015, and there’s no sign of things slowing down! Now is a great time to consider a remortgage so why not give us a ring and see if we can help you out.
Staying on your lenders Standard Variable Rate is probably not the best thing to do as there are some great rates available in January.
Two years ago you’d have been charged an average rate of 3.19%, yet if you now reverted to a current average SVR of 4.56%, you’d be hit with a rate increase of 1.37%. Alternatively, if you remortgage to the current average rate for a two-year mortgage (2.31%), you’d see a rate cut of 0.88%. Remortgaging clearly is a sensible thing to do!
Remortgaging might not be right for everyone, but it’s important to understand your options. It doesn’t have to be complicated or time consuming to remortgage, so it’s well worth investigating if you are looking for ways to make their finances go further in 2017.
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