Possible Rise in Interest Rates Forces Timely Decisions
UK housing market experts are now quite adamant about the possibility of a rise in interest rates sooner rather than later. Many have noted that rates cannot continue at this pace. There remains to be continued heavy competition within the lending community and that is one of the biggest reasons rates have remained so low. Although, increasing costs to lenders of lending will prohibit them to keep lending at these levels. The short term, according to experts, is crucial for making the right decisions on lending and remortgaging. Rates can only remain at this level for so long.
Intense competition among mortgage lenders remains the headline as consumer borrowing rates are low now, but cannot remain at this level forever.
David Hollingworth of London & Country commented on the current state of the lending climate, saying: “Lending is flat on last year so banks are having to compete, and are sacrificing some of their profit margin. But that cannot continue indefinitely.”
Lending includes original loan mortgage lending as well as remortgaging. Original loans were expected to surge in the period following the general election. They sputtered a bit in the immediate moments after the election, but are now starting to show more life. Remortgage activity is beginning to pick up as the official buying season of the summer continues to get on.
Remortgaging offers a way for a house owner to benefit from the equity which has been built in a home with payment after monthly payment. Not only can a lower monthly payment be obtained with a remortgage, but access to available cash is also a possibility. This cash is often used for a much needed home renovation, long overdue holiday, or to pay off old debt.
As the rise in interest rates draws nearer, the benefits of a remortgage could become part of the past before having time to act. An application for a remortgage is always available online and can be completed at any time.