Borrowers are likely to face higher interest rates in the next few months compared to what is available now according to experts. Currently, though the rates are higher than seen this time last year when the Bank of England’s standard base rate was only 0.25%, there are very attractive mortgages and remortgages available from lenders. What is available now from lenders might be on the way out if there is a rate increase in May or shortly afterwards.

The Bank of England’s Monetary Policy Committee (MPC) has been sending signals similar to those seen in the last quarter of 2017 that a rate increase could be on the way. Experts believe it could be as early as May when the rate will get a bump of 0.25% to a level of 0.75%.

For home buyers that could be a game changer in whether they can afford a house, and for homeowners a rate increase could cause a financial burden. Those homeowners that have variable rate mortgage deals or those that have had their deal end and have been moved to their lender’s standard variable rate (SVR) are the ones most likely to take notice. However, those close to having a mortgage deal end might want to consider shopping around for a remortgage, especially one that is long termed and with a fixed rate.

Remortgage lending has been on the rise ever since the last increase by the MPC, and now with a warning of another one so close on the horizon, it is expected that demand will once more be strong. This should be taken into consideration by homeowners that may need a remortgage quick to escape a rising rate in their repayments. If time is of the essence, then experts encourage homeowners to start looking for a remortgage soon.