The rush to remortgage is predicted to continue in 2017.
According to TSB research, 31% of eligible homeowners are planning to utilise the low interest rates, with a quarter of those getting ready to remortgage in January.
The potential savings they could make however, are being underestimated by almost 50%.
A survey of 2,000 homeowners indicated that the average expected saving from a property remortgage was £49. The actual average per month is around £96, or over the duration of a two-year fixed term on a £100,000 mortgage, a total of £2,300.
This opportunity has been overlooked by some homeowners however, who are potentially unaware of the potential savings to be made – 54% of those asked were unable to identify the 0.25% Bank of England base rate. For homeowners who were not considering remortaging, 15% stated their reason for not doing so was due to the effort involved or that it had not crossed their mind.
Commenting on the findings of the report was Ian Ramsden. The Director of Mortgages at TSB stated: “Mortgage payments are often the biggest outgoing for many households. By remortgaging, homeowners stand to save up to £96 per month on average, which can make a huge difference to family finances. It could mean being able to afford a family holiday, carry out much needed home renovations, or simply help ease the pressures on household finances each month.
“Remortgaging might not be right for everyone, but it’s important to understand your options. It doesn’t have to be complicated or time consuming to remortgage so it’s well worth investigating if people are looking for ways to make their finances go further in 2017. At TSB we’ve helped almost 6,000 people remortgage onto lower rates since the Bank of England lowered the base rate.”
