Along with the New Year, the possibility of a rise in base rate is creating much to think about for all those in the market for a change to their home mortgage. The household budget is heavily reliant on the affordability of the monthly mortgage cost. Experts are suggesting many households embrace the idea of keeping payment amounts to the lowest level in order to keep on top of finances and possibly start a new type of resolution.

Mortgage payments typically make up a large portion of the monthly outgoings of any household. This usually totals anywhere from 30% to 50% of all payments. Currently, many house owners are presented with a unique situation. With a possible rise in base rate and a corresponding rise in interest rates, lenders are offering attractive deals on remortgages.

Borrowing is extremely cheap still and there is time remaining before the announcement of a hike in interest rates, according to many experts. Many households could see immediate benefits from a remortgage as there are approximately four million still locked in a standard variable rate mortgage. A remortgage would make it possible to cut some cost out of the monthly mortgage payment and secure a less expensive future.

Watching the cost of additional fees is crucial to making sure the deal is worth doing, according to many close to the housing market. Fees can make or break a deal which appears to be a good deal.

Charlotte Nelson of Moneyfacts commented on term length and fees, saying: “Borrowers on two or three-year deals will have to remortgage just a few years down the line, which could see them paying out yet another hefty fee.”