Homeowners are being encouraged to shop for a remortgage. By shopping online, quick quotes could be obtained to discover possible remortgage offers. Currently, despite interest rates being increased twice, the interest rates are attractively low. More so due to the fact that experts forecast many more possible interest rate increases this year and next year. For homeowners, remortgaging is an opportunity to build a safety net for their financial health rather than face higher costs with their property loan.

Experts are warning households to take a deep look at their household budget and prepare for what is sure to come in the months ahead. Inflation is rising and could reach 7% by spring say experts. This level of inflation would be more than three times the target level set by the Bank of England. The cost of nearly everything is more expensive and due to inflation the borrowing interest rates are due to keep rising which could surely put pressure on homeowners.

The property ladder is usually seen as being in constant motion. New first time home buyers are moving onto the ladder and into either new housing or starter homes where the previous homeowner upgraded to a larger property. Then that same home mover might upgrade again or later downsize and their home is now open to another home mover. However, the lack of supply in the housing market is slowing down the movement of the property ladder in the UK.

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.