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September 12, 2005

British homeowners can save a lot by remortgaging

What is called refinancing in the US is called remortgaging in ole good England. There is also something there, called Standard Variable Rate mortgage or SVR. It is a mortgage product that comes often with no prepayment penalty and a guarantee that your mortgage rate will never be more than 2% above the Bank of England base rate, among other features. The lender bases this rate on the Bank of England's (BOE) base rate, and so when the BOE's base rate changes the standard variable rate will change. So it is somewhat similar to US Home Equity Line Of Credit based on Prime Rate with Federal Reserve in BOE place.

Average British homeowner can today save at least 2 per cent by simply remortgaging with certain short term fixed programs. Most SVRs today are at and above 6 per cent and Portman Building Society offers two-year fixed-rate at 4.2 per cent.

The best way for the British consumer is to shop around starting with the following sites:
Moneyfacts
Moneysupermarket
Moneyextra

Or check with a qualified mortgage broker to "put pounds in your pocket".

Posted in Mortgages at September 12, 2005 12:57 PM

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