According to recent data within the UK housing market, remortgage rates are behaving in a way which is almost foreign to many who are experts in the field. They are in fact rising, signifying a period of time which has not happened for many months. Those homeowners who have chosen to stay on the fence and not make a decision about the future of their mortgage lending appear now to have little time before they will be in a corner with few options to choose from, according to housing experts.

The average fixed rate deal six months ago carried with it an interest rate of 2.44%. This figure has now increased modestly to almost 2.60%. A slight increase in interest rates equates to a major change in the potential amount a monthly mortgage payment can fall or rise.

Experts for months have urged homeowners to consider a remortgage lending product due to the almost perfect set of conditions. Low interest rates combined with heavy lender competition has made it a borrower’s market.

Charlotte Nelson of Moneyfacts.com commented on the current tone which exists within the housing market, saying: “The fact that some rates are starting to creep up for remortgagors is unwelcome news for those borrowers who have yet to capitalise on the heightened competition that has caused low rates to appear in the market.”

Nelson added: “Rates have been on a downward trajectory for such a time that it has almost become the new norm. Those looking to remortgage today may therefore be shocked to see that some rates have witnessed a 0.14% increase in just six months. The average two-year fixed rate will cost borrowers £14.11 a month or £169.32 a year more today compared to six months ago, and with the talk of a base rate rise on the horizon there is no telling by how much more this could potentially rise.”