In November of last year the Bank of England hiked the standard base rate 0.25% to its current level of 0.5%. This rate is higher, but well within the range of being historically low. House owners felt an increase in the amount they were paying for their monthly mortgage payment if they owned a lending product featuring a Standard Variable Rate or Tracker Rate.  Housing specialists see the first increase in interest rates last year as a possible sign the inflation rate is being met head on by the Central Bank.

Inflation remains a continuing issue as the current rate sits at 3% which is 1% greater than the goal level of the Bank of England. Consumers are feeling the pinch of a greater demand on their income for everyday expenses which is leading to less power in affording mortgage products.

This opens up new opportunity for residents to find new ways to save money. One way they are finding relief in outgoings is obtaining a remortgage for their current residence. A remortgage has the ability to lower a mortgage payment by a significant amount. A lower interest rate is possible currently for many households. This lower interest rate however will have an expiration date.

It is impossible to predict the future of interest rates, but the Bank of England is stating a hike in interest rates is likely sooner compared with later. Inflation has a powerful effect on consumers and their ability to afford items of need. It can even make it tough to get through a month. Housing experts believe now is a wise time to be looking at remortgage as a method to save on outgoings and take action before it is too late.