February UK housing market data has shown the still lingering strong demand for property despite the Bank of England raising the standard base interest rate in both of their last two Monetary Policy Committee (MPC) meetings. According to Rightmove, an online property listing site, asking prices rose by a record 2.3% in February. The increase is the largest in the 20 years of data keeping by Rightmove. 

Interest rates are on the rise due to increases in inflation. The target level for inflation set by the Bank of England is 2.0%. It currently is at 5.4% which is putting the squeeze on household budgets. This level of inflation has not been seen in decades. The expectation is for inflation to possibly rise to 7.0% in spring. In an effort to control the quickly rising inflation, the Bank of England’s Monetary Policy Committee (MPC) has increased the standard base interest rate.

It is the time to remortgage, so say experts. Homeowners are facing higher interest rates and by the end of the year the Bank of England’s standard base rate could be the highest it has been in years. In December, the Bank’s rate was at an historic low of almost zero at 0.1%. Due to rising inflation, the Bank of England’s Monetary Policy Committee (MPC) increased the rate during their December meeting to 0.25%. The next meeting, which was in early February resulted in yet another increase to 0.50%. Expectations are of another hike in the rate at the meeting scheduled for 17 March.

According to studies, there are many homeowners that are unaware of remortgaging. Those that are familiar with remortgages often have misconceptions. Due to the many opportunities through remortgaging, experts encourage homeowners to take a look and learn all they can rather than miss out. This is especially so due to the current state of the economy, upcoming impacts to household budgets, and the benefits that could be realized with a new deal.

Homeowners have surely heard the advice coming from many sources: remortgage while the opportunities are at their best and that means now. With rising interest rates, the cost on a property loan is becoming more expensive. Those homeowners that had their mortgage deal end, did not remortgage, and were moved to their lender’s standard variable rate (SVR) are especially encouraged to shop for a remortgage. However, so are those that are on a tracker deal, are close to having their mortgage term end, and even some homeowners that would be required to end their mortgage term early.

Homeowners are encouraged to shop for a remortgage sooner rather than later. There are numerous factors coming into play with the economy that could cause problems for those that are on tight budgets. The good news is that despite the pressures mounting in the economy that could impact households, there is a substantial savings opportunity with a remortgage.