Race to remortgage

If you’re a mortgage holder you may well have been been enjoying a fantastic rate in recent years. Interest rates have been at a record lows since 2009 and those borrowers on their lender’s Standard Variable Rate (SVR) have certainly felt the benefit. SVRs tend to move in line with Bank of England base rate so a low interest rate at the Bank means a low mortgage rate for the borrower!

However, all of this could be about to change. Mark Carney, the governor of the Bank of England has made it clear that interest rates will be rising in the very near future. Indeed, most experts are predicting we could see the first hike as soon as November.

This shouldn’t come as too much of a surprise. Inflation – which is the rate at which the price of general goods rise – has been higher than the government’s target for some time and one way to counter this is to raise interest rates. Furthermore Michael Saunders – an external member of the Bank of England’s Monetary Policy Committee which is responsible for setting interest rates – had been pretty vocal about the need to increase rates.

So where does that leave you? Well, if you’re approaching the end of your mortgage deal or you’re currently on your lender’s SVR now is the time to remortgage. There are still some fantastic deals on offer that you can lock into before rates start to move and we can help you find the most suitable one for you. Call in and see us today to find out more.

You may have to pay an early repayment charge to your existing lender if you remortgage. 

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.