Is remortgaging worth the hassle?
Updated: Apr 6, 2022
Simply put: yes. On average, you can save about £2,000 a year if you switch mortgages, rather than just stay with your lender after your initial fixed deal ends. You can also use them to take on more debt, if you want to or need to. It shouldn’t be too complicated a process, and a broker can help.
It’s more important than ever for homeowners to get the best deal they can on their mortgage. Say you’re on a variable rate – when interest rates rise, you’ll feel the pinch. For example, the knock-on cost of a 1% interest rate rise on a 25-year £230,000 mortgage would be an extra £172 a month, or £2,070 a year. A remortgage can help you get a better deal.
The takeaway is this: make sure you’re on the best deal you can get, and you’ll be likely to save more money than if you stay with your lender and their standard variable rate.
Example *Based on the average property value of £268,000 with an average mortgage of £142,000, the average standard variable rate is 4.04% giving payments of £752.67 against a rate of 0.99% giving payments of £534.52 which provides a saving of £218.15 a month.