Taking out a new remortgage contract may seem like a tedious process of unending admin. If your introductory period on your mortgage is drawing closer to the end and not doing something about it, you’ll be reverted onto your lender’s standard variable rate (SVR), which can be slightly expensive.
According to Moneyfacts, a financial information portal, the average SVR is 4.89%. But currently you can get a two-year fixed, tracker or discount mortgage with an initial rate as low as 1.26%. On an outstanding mortgage balance of £200,000 reverting to a rate of 4.89% will mean you will have to pay £1,156 a month.
Though, remortgaging to the cheapest two-year deal paying 1.26% could theoretically give you repayments of £778 a month – a substantial saving of more than £4,500 a year.
The best remortgaging deal is one that suits your mortgage needs while not raising your expenses. Ideally, a good remortgaging deal will lower your ongoing expenses and periodic repayments by offering a lower interest rate and more suitable features.
Getting expert advice about remortgaging options can be beneficial to you, you have options of a thousand different deals to choose from. Getting in contact with a whole-of-market mortgage broker can help you find the best one for you.