Up to 800,000 UK homeowners could be paying more than necessary for their mortgage, said an article in Homes & Property recently. They could be saving up to seven weeks’ worth of earnings simply by remortgaging, claimed the magazine.
A similar point had been made by Forbes magazine on the 22nd of April 2020, when it referred to the Bank of England’s reduction of the base lending rate to 0.1% on the 19th of March and the subsequent fall in mortgage rates generally.Reasons to remortgage
Forbes argued that the fall in interest rates allowed many mortgage holders to remortgage their home to enjoy a more favourable, competitive deal.
Many homeowners enjoyed cut-price mortgage repayments while on an initial fixed-rate deal but have since reverted to the lender’s much higher standard variable rate (SVR) once the initial introductory offer expired. Remortgaging – effectively replacing the existing mortgage with a new alternative – offers a way …