Homeowners are taking advantage of the current low interest rates available with remortgaging. The interest rate is the cost the homeowner pays for their loan. There can be other costs involved with a remortgage or mortgage, but basically the main cost is determined by the interest rate. The lower the rate, the less one will pay and that is why homeowners are seeking a low rate now before the Bank of England’s Monetary Policy Committee (MPC) raises the rate and makes borrowing more expensive.

Homeowners have been busy taking advantage of the many opportunities currently available with remortgaging. It is no secret that there are savings to be found and in many cases quite a substantial level of savings with the right remortgage. However, a recent report revealed that many homeowners are not aware of how a remortgage could be helpful or how to shop to find the best remortgage deal.

According to a recent report, almost half of all homeowners have never remortgaged their homes. Barclays also reported that those homeowners could be saving a substantial amount of money due to the low interest rate remortgages now available. The reason behind the lack of action to remortgage and save is due to being confused by remortgaging terms and exactly what a remortgage does for a homeowner.

There is an expected slowdown coming to the housing market according to some experts. It is not the expected natural correction that could occur to the market. Nor is the slowdown due to rising interest rates, though that could happen in early 2022. The slowdown to the housing market is expected due to a lack of supply.

The forecast for the Bank of England’s standard base rate is for interest rate increases in 2022. Emphasis is on the plural of increase as there are expected to be a few of them. In fact, one report has forecasted many increases in 2022 and continued increases over the next five years. With rising interest rates there is an expectation of a slowdown in the housing market. Making borrowing more expensive is likely to put some home buyers out of reach of the property ladder and discourage many from taking on an expensive mortgage debt.

Data released by LMS reveals that homeowners were anxious to take advantage of remortgaging opportunities in September. There were more than two times the volume of remortgages obtained and half of the deals were for five years with a fixed interest rate. The majority of homeowners are choosing fixed rate remortgages to create a safety net against rising rates.