We’ve told you that the amount of people remortgaging is increasing but why are they doing it? Should you be doing it?

The primary reason that people remortgage their homes is to save money.

When you first take out a mortgage it is often on a fixed or discounted rate – but this is only for so long, most commonly 2 years. Once this original deal is over you will be moved onto the lenders standard variable rate (SVR).

What is a standard variable rate?

A standard variable rate is a type of variable rate, this means that it is affected by interest rates. To you this means that your mortgage payments can go up or down – they are not a stable price. Generally if interest rates go up then your monthly repayments will go up!

It is up to the lender you are with to set the SVR. So for example they could:

  • Keep the SVR the same
  • Increase the SVR
  • Decrease the SVR

This leaves you in the unknown  – not great if you are risk adverse!!

So what can I do about it?

This is when people commonly choose to remortgage their property.

This can be with the same lender or a different one. Either way it is best to shop around to make sure you are getting the best deal possible. This is where we come in handy – we do the work for you!!

If you have taken out a mortgage with us before we will even email you before you go onto the SVR to remind you that it’s time to review your mortgage.

The take home message?

Not reviewing your mortgage regularly could be costing you money.

If you are at the end of, or at coming to the end of,  your deal get in contact with us and we will be able to advise you further so that you don’t spend any more than you need to each month.

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