Savings sought from remortgaging

The most recent interest rate rise in May, a 0.25 per cent increase which took the base rate to 5.5 per cent, will prompt homeowners whose standard variable mortgage (SVR) is coming to the end of its term into action.

Remortgaging to a better deal could save hundreds of pounds, but those who fail to prepare in advance for this course of action could find themselves with "a nasty shock in store".

Katie Tucker, product specialist at Charcol.co.uk, has expressed how important it is for mortgage holders "to be aware of their revised reversion rate" and "to really do their homework" so they don’t end up losing out financially.

There have been four interest rates increases since last August, which means many homeowners will end up paying more than they need to if they don’t research the remortgaging process, and end up leaving things to the last minute.

On a mortgage of £250,000, as much as £450 in interest alone could be saved each month by switching from a 7.5 per cent SVR to a 5.34 per cent loan, for example.