Mortgage is the biggest financial commitment to make in life. Like any financial product, rates and offers vary and looking to remortage may prove a worthwhile exercise.
Most people will take out a specific low rate deal with a mortgage lender for a certain amount of time. Once this deal ends we will move onto our lenders' standard variable rate. This standard variable rate is usually higher than many products on offer. Standard variable rates are around 6.4% at the moment. However, rates of around 5% are readily available. On a 150,000$ repayment mortgage over 25 years, at a rate of 6.5% monthly repayments would be 1013.82$. At a rate of 5% they would drop to 875.62$, a saving of 133.27$ a month or a massive 1641.62$ a year.
Even if you are not on your lender's standard variable rate, it is a good idea to check how competitive your current offer is. When comparing this with other mortgage products, you should consider whether there is a penalty for repaying you existing mortgage early as this could wipe out any potential saving. You can get a redemption statement from your current lender that will tell you how much you owe and how much this will cost to repay your mortgage early.
