Homeowners consider yourselves warned, interest rates are likely to go up and when they do, you need to have prepared. Those that are close to having their mortgage deal end would do well to start shopping around for a remortgage while rates are low. The homeowners that should truly consider preparing soon are those that have had their mortgage deal end and they have been moved to their lender’s standard variable rate (SVR).

Lenders aren’t always very good at giving ample time between when they announce a hike in their SVR and when it takes effect. A household on a set budget could find that a sudden hike in mortgage repayments makes things difficult. Experts have reported that there are an alarming number of homeowners that are not ready should an interest rate hike occur and they be required to pay more. A good many of those polled have stated that higher interest rates could put their mortgage in jeopardy at falling behind.

Lenders have for several months remained in a competitive hold. They are fighting for the attention of borrowers, and this is despite the current growing demand in the housing market. Some believe the boost to the market expected before the April stamp duty change for second homes and landlords, and the extension on the Help to Buy scheme could ease the competition between lenders. If so, then lenders could pull their cheapest remortgage and mortgage deals long before the Bank of England makes a change to the standard base rate.

The fact remains that remortgages currently have very attractive low interest rates and they won’t be around forever. For homeowners that could benefit from a fixed rate or a savings on monthly repayments, to prepare now and secure a cheap deal makes a lot sense. The clock is ticking though and approvals take time, so the sooner the better is the advice from most experts.