Earlier this week, the government announced plans to increase national insurance payments for employees and employers by 1.25% as part of its plans to deal with the country’s social services crisis. National insurance is paid for by the majority of workers in the UK through an automatic pay cut. Thanks to the tax, the British become eligible for certain benefits and the new state pension. Under the new ‘health and social care tax’, nearly £ 36 billion will be collected by taxpayers to support the country’s struggling social welfare sector.
The average UK homeowner can save around £ 294 per month just by remortgaging one of the country’s six major lender reversion rates or the Standard Variable Rate (SVR).
Research by Habito suggests this equates to a saving of £ 3,528 over a full fiscal year.
A study conducted by the mortgage broker with over 2,000 homeowners found that this could be a lucrative opportunity for many Brits.
Some 27 percent of those polled said they were on the highest possible interest rate from their lender.
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By comparison, nearly one in five people polled by Habito admitted that they didn’t know whether or not they were on the highest interest rate.
Rosie Fish, mortgage expert at Habito, believes remortgage on a property would benefit many people across the country looking for additional savings in response to the government’s tax hike.
Ms Fish said: “Unexpected tax increases can be stressful, especially in times of uncertainty.
“But there are ways to cut costs in other areas of your life – your mortgage is one of them.
Usually, people decide to remortgage if their current mortgage contract is about to end or if it has already moved to a follow-up rate.
It typically takes four to eight weeks after a person requests a mortgage response to get a response. For most inquiries, Brits will need to speak to one of the lender’s mortgage advisors, who will be qualified to advise them on the best deal for your needs.
Lenders typically let homeowners sign an agreement in principle online (AiP), which lets them know if a lender is ready to lend the amount needed, without a full credit check.
Before applying for a remortgage, homeowners should be aware of the costs they could potentially pay, which include application fees, appraisal fees, and attorney fees.
After singing an AiP, homeowners will be able to apply for their remortgage. However, they will need to provide information about their personal and financial situation, including details of their current mortgage.