One thing I am always passionate about is remortgaging and the money that can be saved by always making sure you are on the best loan deal that you can be.

I’m not alone in this and it seems the message is getting through.

According to figures from UK Finance and reported by Which?, the number of remortgage approvals jumped by 23.8% month-on-month and 11.1% year-on-year in March.

It makes perfect sense.

Many of us taking out mortgages sign up to an introductory offer – maybe a two-year or five-year fixed rate, for example. When that period comes to an end the lender will switch you to its standard variable rate (SVR) which is likely to be a lot more than your previous deal.

Instead it’s worth remortaging, to find yourself a new, cheaper rate.

According to Moneyfacts, the average SVR is around 4.89%, whilst you can get a two-year fixed mortgage now for around 1.26%. So if you have a mortgage balance of £200,000, reverting to that 4.89% would cost you £1,156 a month. But if you took out that 1.26% deal instead you’d be paying £778 a month – a saving of £4,500 a year.

Even taking into account any fees that might be associated with a remortgage, that saving still makes perfect sense, whilst staying on a standard variable rates certainly doesn’t.

Taking out a remortgage can be a little complicated and it is always worth getting some advice, particularly as there are so many deals out there.

For a free, no obligation discussion on any mortgage or insurance-related issue, please give me a call on 01723 384558 or 07767 692 653 or email me at mgrayshan@googlemail.com