Fixed Interest Rate Remortgage Provides Security against Future Hikes
Many house owners purchased their homes years ago with a SVR mortgage. A Standard Variable Rate mortgage is a loan which many first timers and other home movers prefer when obtaining financing for a home. It is typically in line with the current base rate. It carries with it added risk that it could increase at some point before the mortgage matures. There are some advantages to this type of loan, but most often home movers seek a fixed rate due to its ability to protect them in the future from interest rate hikes.
Many housing experts see an interest rate hike coming by the end of this year. Those who are now holding a mortgage with a SVR type loan are being urged to seek out a fixed rate remortgage in order to protect them from an increase in rates.
The future economy is built currently on unpredictability. No one economist or expert can perfectly forecast what will take place in the future. No one can predict what will take place with inflation, new taxes, or the cost of home renovations. No one can estimate how many rate hikes will take place in the next three years or five. One thing is certain. A fixed rate mortgage loan product will protect any home owner from the damage an increase in interest rates can produce.
A fixed rate remortgage has the ability to ward off higher mortgage payments like a warrior with a sword and shield. The process to apply for a remortgage is now easier than ever and can be completed entirely online.