News of Potential Interest Rate Hike Pushes Urgency of Remortgage to New Level
With the possibility of a hike in the country’s base interest rate, borrowers are now feeling the heat to remortgage into a fixed rate if they have not already. More news of an interest rate increase is sending many to their lender of choice to lock down a new mortgage deal. Some lenders are already pulling some of their best deals in anticipation of a rate hike in the month of November which is just weeks away.
A hike in interest rates seems likely to take place next month, according to many close to the UK housing market. Banks and other lenders are making changes to their lineup of attractive deals as swap rates are on the increase already. Swap rates are rates banks and other lenders pay each other to borrow money from one another.
There is still time to remortgage before rates are increased. Many housing experts are urging house owners looking to remortgage to do it now if possible. Although there are preparations to a remortgage which take some time, house owners looking to obtain a better deal still have until the first days of next month, according to mortgage specialists.
A bump in interest rates could mean the difference between a few pounds and a few hundred pounds added to the cost of a mortgage. Interest rates have been at historic lows now for years. A rate hike will be the first in years and will impact each mortgage payment differently. Locking in a new fixed rate now will offer protection against future hikes in interest rates.