Homeowners coming to the end of their mortgage term this year are encouraged to shop for a remortgage as soon as possible. Doing so will allow them to prepare to face higher interest rates and grab a deal that allows them to better afford their repayments, choose a low interest rate, possibly cash out built up equity to put money into hand, and choose a fixed deal to lock in their new rate. While there are many homeowners coming to the end of their mortgage term, even homeowners not nearing the end could benefit from a remortgage.

Homeowners, it is time to take notice, as there are banks that are holding back on their own rate hikes. This offers savings that would not have been there. The twelfth increase in a row of the standard base rate by the Bank of England’s Monetary Policy Committee (MPC) occurred last week. The base rate rose from 4.25% to 4.5%. Borrowers could expect lenders to quickly make a change to their offerings, but some are not. This will benefit not only homeowners, but home buyers as well. With large levels of debt, it is advantageous to have access to the lowest interest rates possible to save money.

The Bank of England’s Monetary Policy Committee (MPC) met today and due to the latest report on the economy and the level of inflation voted to increase the standard base interest rate again. It makes the twelfth consecutive meeting the MPC has hiked the base rate since December 2021. The rate increased by 0.25% and is now 4.50%, which is the highest base rate since 2008.

Following the report from Nationwide revealing there had been slight growth in the average house price in April, Halifax has reported the same with April growth at 0.1% in comparison to the same month last year. It is, however, the lowest rate of growth since December 2021 and it is a decline from the increase reported in March of 1.6%. The average house price declined from March by 0.3% to £286,896. 

This Thursday, 11 May, the Bank of England’s Monetary Policy Committee (MPC) will meet to discuss the economy and determine if further rate hikes will be required to the standard base interest rate. If the majority of members vote for an increase in the rate, it will be the twelfth consecutive meeting with an increase. The base rate will be 4.5% should the rate be increased by 0.25% as it was in March. Economists are forecasting for the rate to increase due to continued strength in the inflation rate which was last reported at 10.1%.

Experts have been concerned for homeowners and their ability to afford their mortgage repayments due to rising interest rates. Their warnings have grown for those coming to the end of their two-year fixed mortgage terms this year due to their need to move to interest rates of today from those offered when rates were historically low. The difference in their repayments could be hundreds of pounds more per month. The best strategy according to experts to make the most of any savings possible would be remortgaging.