The time of a higher interest rate is possibly closer than it appears. Lenders have already gone through the practice of raising rates on many of their mortgage deals in preparation of what is to come. The inevitable day is nearing which all home owners with variable rate and tracker deals keep an eye out for as time goes on. Interest rates will rise according to the Bank of England and many home owners are still not prepared for it.

Last November the standard base rate was raised from 0.25% to 0.5%. This caused more than just a slight ripple effect across the UK housing market. This caused a wave of new, higher monthly mortgage costs. Home owners are still trying to find footing after the increase. Although the rise in the standard base rate was only 0.25%, it doubled the standard base rate to 0.5%.

Many housing experts have been making the recommendation for some time with many home owners listening and obtaining a fixed rate remortgage deal. This enabled them to start saving immediately and improved their position for any future increases in rates. Although there have been a significant number of remortgages obtained in recent months, several households are still holding on to their current deals. This places them in a vulnerable position for not only this rate rise but others to follow.

Remortgage provides protection against rate rises in the future. It also makes access to home equity possible. Lenders are still offering attractive deals with low rates and incentives. However, at this point the time to take advantage of these deals is becoming quite limited according to those close to the housing market.