TSB: Brits could save double what they expect by remortgaging

16th January 2017

The remortgaging rush is expected to continue in 2017, with 31% of eligible homeowners planning to cash in on low interest rates. A quarter plan to remortgage in January alone.

However, according to a new report from TSB, the savings they could be making are being substantially underestimated. Its latest survey shows that the average saving homeowners expected to make from remortgaging their property was estimated at £49 a month. This compares with an actual average saving of £96 per month, or £2,300 across the life of a two-year fixed term on a £100,000 mortgage.

Around 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 88% doing so to free up monthly income, lock in a fixed rate to manage their money more effectively, or to 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 recorded a 27.5% increase in remortgage applications in 2016, has launched its Stay Nation Britain report to explore the outlook for remortgaging in 2017.

Ian Ramsden, added: “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.”

*2 year fixed with TSB 1.09% then 3.59% - APRC is 3.3% Max LTV is 60%. Quoted on 27th May 2020.