Homeowners could reduce their monthly mortgage payments by an average of £169 in 2021 by remortgaging at current interest rates, according to research*.
Back at the beginning of the pandemic, Bank of England (BoE) slashed its base rate to a record low of 0.1% to mitigate the pandemic’s impact on the economy. While disappointed savers saw their interest cut to almost nothing, homeowners have potentially stood to benefit.
Households aim to reduce spending
According to the research, the economic fallout of the pandemic means that many homeowners (70%) are looking to cut costs this year. And yet, despite today’s current low interest rate environment and the significant cost of mortgage outgoings, an astonishing 89% of homeowners haven’t considered remortgaging as a way of reducing their spending.
Instead, they tend to focus on smaller cost-cutting exercises, such as reducing takeaways (60%), switching energy provider (33%), or cutting out takeaway coffees (29%).
Remortgage myth-busting
According to the study, there are some common reasons why homeowners shy away from the remortgage process, including:
• It’s too daunting/stressful – 25% of homeowners think that remortgaging is too stressful an undertaking. However, we can search for the most suitable mortgage for you and your circumstances, break down the process into easy steps and liaise with your lender on your behalf
• I’m happy with my current rate – 51% of respondents said they’re already happy with what they’re paying – but what if they could be paying even less? With the study calculating an average annual saving of £2,000, maybe it could be worth considering your options?
• It takes too long and I don’t know where to start – we work with our clients to drastically cut the time they have to spend on the remortgaging process. From searching out the most suitable mortgages, so you don’t have to, to communicating with lenders, we can minimise the time and effort you have to spend on the remortgaging process.
So, get in touch
If you’re looking to remortgage or would like to but don’t know where to start, just get in touch. We can explore your personal circumstances and assess whether remortgaging could benefit you.
*TSB, 2021
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.
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