The future of interest rate hikes became clearer recently as the Bank of England kept the current standard base rate at the same level, but warned the change in rates was coming. Inflation remains beyond the Central Bank target rate of 2%. It currently sits at 3%. One sector which is almost operating in anticipation of the rate hike is the remortgage sector. Activity remains high compared to other forms of mortgage lending.

Remortgage activity continues to be high across the country as house owners are not sitting on their hands and waiting to see the inevitable take place once again.  Interest rates were hiked in the first days of November last year and the Bank of England has discussed raising them again in the near future.

The current standard base rate sits at 0.5% which is historically quite low. Before the base rate increased last year it was half that amount at 0.25%. Housing specialists are urging those who are in the position to remortgage to consider it now whilst times are still favourable for such a move.

Remortgage has the potential to save money immediately on the cost of the monthly mortgage payment. Some house owners have found savings of more than £1,000 per month. Many are obtaining a fixed rate deal and lenders are making it happen by offering packages featuring low administration costs and other incentives.

 Rob Clifford, Commercial Director at SDL Group, commented on the latest Bank of England decision, saying: “It doesn’t matter whether you are considering the residential or the buy-to-let market, the fact remains the same that consumers want interest rate certainty and the best deal they can get. Consumers are preparing for a rise and they’re quite literally getting their financial house in order.”