New research suggests that now is the perfect time to remortgage as more products hit the market and rates fall significantly.
As remortgage activity has surged to its highest level in four years, Moneyfacts.co.uk says there has never been a better time to take advantage of today's great low rates.
Charlotte Nelson, finance expert at Moneyfacts, said: “Growing product numbers and falling rates have created a perfect storm in the remortgage market, and borrowers are rushing to take advantage.
“Some rates have witnessed particularly dramatic reductions since the beginning of this year.
“The average two-year fixed mortgage for remortgage customers has fallen by an astonishing 0.39% in just six months, for example.”
Yet with the average standard variable rate still 4.82%, homeowners have plenty to gain from remortgaging.
Nelson said: "By switching to the average two-year fixed rate mortgage, customers with a £150,000 mortgage over a 25-year term can potentially save £2,196 in just one year.”
She said many deals also offer the option to make overpayments, which can benefit remortgage customers even more.
"Wise remortgagors could use the money saved from changing deals to overpay their mortgage, thereby reducing the length of their mortgage term."
She said some people may be deterred by the lengthier remortgaging process following the Mortgage Market Review.
"But as long as remortgagors get their finances in order, there is nothing to worry about."
Nelson warned that the current trend won't last forever and people should act now to avoid disappointment.