Experts are encouraging homeowners to prepare for higher repayments and to do so they should get familiar with their current mortgage deal and start shopping for a remortgage sooner rather than later. Many homeowners are simply happy to get a mortgage and their property. Focus quickly moves on to planning their move and turning their house into a home. It would be easy to forget about the details of their mortgage loan and many do. 

The expectation of the Bank of England’s Monetary Policy Committee (MPC) increasing the standard base interest rate during the March meeting also sparked a competitive lending market for mortgages and remortgages. Demand had already declined due to the higher cost of borrowing, and with yet another increase lenders prepared by offering more attractive deals which included a slight decrease in the their interest rate offerings. Fortunately 

The Bank of England’s Monetary Policy Committee (MPC) increased the standard base interest rate last week. It was the eleventh consecutive meeting for the MPC to hike the rate upward. This has proven to be a concern for experts for homeowners. Only a bit over a year ago, the rate was at an historic low, and now it is the highest it has been in over a decade. The change in a homeowner’s repayment levels could be dramatically different and for some it could lead to a lack of affordability.

The Bank of England’s Monetary Policy Committee (MPC) has voted during their March meeting to increase the standard base interest rate. This is the eleventh consecutive time the MPC has voted for an increase. It is now at 4.25% and many experts believe it will not be the last time the rate will increase. It could reach 4.5% by this summer. This information should be considered by those that could be financially impacted by higher interest rates.

For homeowners, the best strategy according to the experts, is to shop for a remortgage no matter where one is in their mortgage term. For those already at the end of their term which have been moved to their lender’s standard variable rate (SVR), to keep from paying more than necessary a remortgage is certainly a good strategy to save money. Those that are close to coming to the end of their mortgage term could do well to consider shopping for a remortgage early. It allows time to prepare with important information in hand that will help any homeowner, no matter where they are in their mortgage term, to find the best remortgage offer.

The gloom and doom predictions for the housing market and perhaps even the UK economy could instead have a more optimistic outlook. The online property listing platform, Rightmove, has reported that there was a £3,000 increase in the housing market’s average house price. The new average house price is therefore at £365,357 in March. It is a minor but significant increase as it comes while much is unsteady about the economy and the housing market.