Remortgage demand is likely to soar as warnings increase as to a hike in the rate looming before the end of the year.  Homeowners will be seeking to escape a risk laden standard variable rate (SVR) that their lenders could increase before the Bank of England’s Monetary Policy Committee (MPC) takes action.  Even those homeowners with a current mortgage deal that have yet to switch to their lenders SVR will be taking a good hard look at the available cheap deals still on the market.  For once the MPC votes to increase the rate, the current 0.5% rate will likely and hopefully for the sake of the UK economy, never be seen again.

The Bank’s current rate is forecasted to increase as early as November while some believe that a rate hike at the turn of the new year is a possibility.  The rate has remained unchanged since March 2009 when the rate regulators sought to correct the economy and stimulate growth.  As consumer confidence grew and borrowing remained cheap, the housing market began to see a surge in growth that indicated the need for a rate increase and thus the warnings have been sounding off to gain the attention of homeowners and hopeful home buyers that mortgage and remortgage borrowing was going to become more expensive.

Homeowners and property buyers will find that while there is still time to gain a deal with a historically low interest rate that choosing to act soon is imperative.  Lenders are now required to check more intimate details of a borrowers spending and saving habits to assure responsible borrowing is in action and that the loan seeker is able to afford the deal they seek as well as being able to afford the deal if interest rates increase.  Therefore waiting till the last minute to seek out the most affordable deals offered by lenders would be unwise for the borrower that has time to shop around and complete the process before rates increase is the one that will have the most to gain.