Despite the lower interest rates currently being offered by lenders, homeowners are staying away from new remortgage deals.  Demand has remained low even in the echo of warnings from experts that the Bank of England will soon increase the standard base interest rate.  Early 2015 is the expected time for the rate hike but homeowners have been warned to have a plan in placed if they caught off guard and their interest rate is increased before they have time to negotiate a new deal.

The Bank of England’s Monetary Policy Committee (MPC) will meet this week for their monthly meeting to discuss the economic state of the UK and the possibility of increasing the currently historically low interest rate of 0.5%.  The Bank’s rate has been left unchanged since March 2009.  This is why there is much concern being expressed that homeowners may not have a plan in place if they are not seeking a remortgage to secure a low interest rate.

Those mortgage holders that have had their current deal end and have moved onto their lender’s standard variable rate (SVR) are at the most risk.  A lender’s SVR can be increased without notice and could be quicker to rise than the expected Bank’s slow and steady rate hikes.

Those that do want to protect their low repayments for years to come can find fixed rate remortgages are at some of the lowest levels seen in years.   Lloyds Bank, Virgin Money, Metro Bank, Halifax, Barclays, Nationwide Building Society, HSBC and Skipton Building Society have all released new cheap interest rate remortgages.