Possible Interest Rate Hike Causing Changes within Market
The possibility of a rate rise is increasing during the month of August in the opinion of some close to the housing market. The current standard base rate of 0.5% could be hiked to at least 0.75% according to some experts. This potential rate hike is affecting the interest rate deals across the country with all types of lenders. Some lenders are reducing their rates connected to remortgage deals in an effort to give borrowers one last chance before interest rates rise next month.
Home owners looking to improve their current mortgage loan and remortgage are now facing a serious time constraint. The potential for a rate rise increases with every day and days are running short to the August monthly meeting of the Monetary Policy Committee within the Bank of England. The meeting will take place only a few days into the month, so there is little time left before the entire complexion of the market could change.
Lenders typically start raising rates on deals days before the official hike takes place and this increase will likely not be any different. Home owners who have considered remortgage in the last few months have only a few days left to switch to a fixed rate deal. A fixed rate remortgage arrangement could be something which not only immediately saved money, but also gave a home owner access to cash through the process of gaining approval.
Remortgage is making it possible for many house owners to obtain a better deal which is changing the financial future of the household.