"At TSB we’ve helped almost 6,000 people remortgage onto lower rates since the Bank of England lowered the base rate."
The remortgaging rush is expected to continue in 2017, with almost a third (31%) of eligible homeowners planning to cash in on low interest rates and 25% of those preparing to remortgage in January, according to TSB research.
However the potential savings they could be making are being underestimated by nearly half.
According to the survey of 2,000 homeowners, the average saving they expected to make from remortgaging their property was estimated at £49 a month. This compares with an actual average of £96 per month, or £2,300 across the life of a two-year fixed term on a £100,000 mortgage.
Despite these potential savings, some homeowners remain unaware of the opportunity altogether. More than half (54%) aren’t able to correctly identify the Bank of England base rate as 0.25% and 15% of homeowners who aren’t considering remortgaging say they won’t be doing so because it’s too much effort or it hasn’t crossed their mind.
Ian Ramsden, Director of Mortgages at TSB, said: “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.”