There are warnings of rising interest rates to come next year. It could be in the first quarter according to some experts if inflation continues its ascent and the latest discovered Omicron variant of Covid-19 has little impact on the economy and businesses. Once an increase occurs, there are warnings to expect several of them to follow. Some forecasters have offered a future with double digit interest rate levels from lenders in only two years.

Lending is currently very cheap. The Bank of England’s Monetary Policy Committee (MPC) lowered the standard based interest rate to the lowest level in 300 plus years in response to the global pandemic. Since lowering the rate to 0.1%, borrowers have been active in taking advantage of the opportunity to borrow cheaply. This is especially true in mortgage and remortgage lending.

Experts have been awaiting the data associated with the ending of the stamp duty holiday. The discount had been put into place to assist home buyers during the start of the pandemic. Keeping the housing market active would be vital to the health of the economy and it was hoped buyers would be motivated if there was an opportunity to save. It turned out that the stamp duty holiday and low interest rate levels were definitely motivators. The UK housing market surged and at levels that broke records for volume of sales.

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.