Remortgaging rush set to continue claims TSB

Remortgaging rush set to continue claims TSB
By remortgaging, homeowners stand to save up to £96 per month on average, which can make a huge difference to family finances

A new report and survey from TSB has claimed that the remortgaging rush is expected to continue in 2017, with up to 31% of eligible homeowners planning to cash in on low interest rates.

According to the report, 25% of those plan to act now and remortgage in January. The potential savings they could be making, however, are being underestimated by nearly half.

TSBs survey of 2,000 homeowners found 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.

33% of JAMS (homeowners who identified their financial situation as ‘just about managing to cover monthly costs and outgoings) are planning to remortgage in 2017, with the majority (88%) doing so to free up monthly income, lock in at a fixed rate to better manage their money, or take advantage of the low interest rate environment.

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.”


TSB, which has witnessed a 27.5% increase in remortgage applications in 2016 compared to 2015, has launched its Stay Nation Britain report to explore the outlook for remortgaging in 2017.

By remortgaging at a lower fixed rate, homeowners have been able to free up extra cash for other uses:

Go on holiday:  39% would use the extra money to go on holiday, and 24% of these homeowners said they would go on three or four holidays in the year with Greece and Florida proving popular.

Higher mortgage repayments: 37% of those surveyed say they would use the extra money to overpay their mortgage payments, with the aim of becoming mortgage free faster.

DIY:  30% plan to carry out DIY jobs and one in five 21% would use the cash for a major home renovation like a loft conversion or extension. These plans include adding more bedrooms for a growing family 21%, creating space for a home office 13% and making their home open plan 16%.

Spruce up the garden: 16% would spend the money on doing up their garden, with most wanting new paving or raised flower beds.

Big ticket item:  A further 11% would buy a big-ticket item like a fridge or new TV.

Buy a new car: 9% would buy a new car with around half (48%) opting for a family sized car.

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, continued: “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.”

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Latest Comments

Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

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Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

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paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

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CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

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warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

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MH
MH 13 Apr 2017

You are right that the bank holidays are going to be spoiled in looking for the properties. But people who want to sell their property and looking for the better relocation, they can get benefits of this...

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bnellyb
bnellyb 08 Apr 2017

There will be an exodus of private landlords over the next 5 years as tax changes take effect, private landlords provide an important service to the rental market, why do housing associations and councils...

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Fred Cassman
Fred Cassman 07 Apr 2017

"Make it look like you are at home": often people forget this and share on facebook their location!

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jared townsend
jared townsend 05 Apr 2017

It'll be interesting to see how & if the Government's asset sale regarding mortgages helps

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