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Homeowners Escaping Rising Interest Rates Through Remortgage

Homeowners Escaping Rising Interest Rates Through Remortgage

Homeowners may have a wide variety of low interest rate remortgages to choose from currently, but they don’t expect that trend to last. According to the data from the LMS survey, nearly two thirds of borrowers expect interest rates to rise within the next year. This opinion prevails despite reports that economic conditions could cause interest rates to be cut. Over half, 59%, expect interest rates to rise within the next 12 months. This expectation is why so many homeowners are seeking fixed rate remortgages.

Fixed rate remortgages have had high demand in remortgage lending. The five year fixed deal is the most popular and the interest rates attached to them are very attractive. Longer terms have slightly higher interest rates attached, but for some, the longer terms might prove to be the right deal for them.

Interest rates offered currently are for some lenders at their historic low. Lenders are also offering creative remortgage products that are attracting homeowners with unique and complicated remortgage needs.

Another popular remortgage offer is that of the equity cash release, which turns built up equity in the homeowner’s property into cash that can be used however the homeowner chooses. Though there are a variety of intended uses for the cash, many homeowners choose to upgrade and repair their property, consolidate debt, or have cash on hand for emergency needs while also securing a low interest rate for the days ahead.

Homeowners are expecting rising rates sooner rather than later, and preferring not to suffer through a tightened family budget or financial difficulties they are escaping rising rates through remortgaging. Peace of mind and low interest rates are possible for homeowners to discover during these uncertain economic times through a remortgage, and not intending to miss the opportunities, many are taking action while low interest rates could offer savings.

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