Feeling the pinch? Remortgaging could help you strike financial gold
Christmas is fast approaching and with it comes another financial drain. With belts already straining on the last hole, courtesy of the ever-increasing cost of living, it seems everyone is looking for a way to save money and pawning possessions on eBay will only get us so far.
But it seems Barclays have found a potential saving grace because according to the high street bank, around 60 per cent of homeowners could save on average £1200 a year by remortgaging.
There is a general impression from many homeowners that remortgaging is more hassle than it’s worth, only saving them pennies each month. However, according to Barclays’ data, UK homeowners could save up to £346m over the next two years by remortgaging.
Andy Gray is the Head of Mortgages at Barclays.
“There are an increasing number of good mortgage deals to be had, so we are urging home owners to act now and look at the rate they are paying to allow them to get more out of their hard-earned cash.”
With interest rates remaining at a historic low, mortgage rates are at their most competitive with Leeds Building Society currently offering the lowest rate of 1.99 per cent. Many homeowners tend to fall into the standard variable rate (SVR) trap once the original term of their mortgage comes to an end, thinking it’s either going to cost them to remortgage or that it’ll take a long term and a plethora of paperwork.
However with SVRs varying so considerably remortgaging is always worth considering. Lenders are relying on homeowners to remain lethargic towards remortgaging; Lloyds, for example, have increased the standard variable rate for Bank of Scotland only this week. Its SVR is now 4.95 per cent, up from 4.84 per cent.
Goldsmith Williams offers a 7-day remortgage guarantee (from receipt of mortgage offer to completion) so you could have your new lower rate mortgage in place before you even start your Christmas shopping. To find out more about remortgage, simply complete our online enquiry form and a member of our team will be in touch.
Content correct at time of publication