With interest rates still very low, but expected to rise in the months to come, now’s a good time to see whether remortgaging could save you money.
Lots of people stick on their lender’s standard variable rate (SVR) after rolling over onto it after their initial mortgage rate finishes, but might be able to trim hundreds, if not thousands of pounds, off their annual costs by remortgaging to a cheaper deal. According to Rest Less research, worryingly those aged over 50 are much more likely to be on their mortgage lender’s SVR than other age groups. One in three (35%) of those questioned aged 50 and over said they were paying their lender’s SVR, compared to just one in five (20%) of those aged under 50.
Someone with a £150,000 10-year repayment mortgage on an SVR of 4% would currently be paying £1,519 a month. If they remortgaged to a best buy two-year fixed rate deal at 1.12%, their monthly payments would fall to £1,322, a saving of £197 a month or £2,364 a year. Even if you factor in a £999 arrangement fee, that’s still a saving of £3,729 over the two-year fixed rate period.
If your mortgage deal is coming to an end soon, or if you’re on your lender’s standard variable rate, then you can compare mortgage rates from the whole of the market using this Mortgage comparison service. You might be surprised at how much you could save. Alternatively, if your mortgage has several months or years to run, you can set a mortgage reminder here and we’ll email you nearer the time.
If you’re looking for somewhere to start, we’ve partnered with an experienced mortgage advisor to offer Rest Less members high quality advice on standard, retirement interest-only and buy-to-let mortgages. You can book a free, no-obligation call back here.