The Bank of England’s Monetary Policy Committee (MPC) voted during their August meeting to raise the standard base interest rate. The rate hike of 0.25% increased the overall rate to 0.75%. While that is still way under what used to be considered normal before the economic crisis, it is three times the level seen this time last year. From March 2009 until November 2017 the standard base rate had been steady and unchanged at 0.25%.

Homeowners had been warned that any increase could be a shock to some home budgets. Rather than paying more than they have to on repayments, experts suggested that they seek out a remortgage and determined what was available, the benefits of the deals found, and the savings opportunity.

However, it is expected that fewer took the advice than those that seriously should have taken action.

Once the MPC increased the rate, many that had their mortgage deal end or had already had their term end and were moved onto their lender’s standard variable rate (SVR) were at risk of facing financial stresses. Some lenders quickly passed on the increase to their borrowers, others have held off at least for now.

Not only will homeowners on a SVR see a loss of money as they pay on a higher interest rate, but those with variable rates rather than fixed rate terms will face increases. Home buyers are also facing higher mortgage interest rates.

Because there are some lenders that have not passed along the increase to borrowers, there are still attractive remortgage deals to be discovered. Experts suggest that homeowners shop around and determine what is available that matches their needs. A few quick minutes online could help them find out how a remortgage could save them money and if inquiring about a fixed rate how a remortgage could offer a safety net against future interest rate hikes.