The prospect of an interest rate rise was pushed into the distance by low inflation, slowing world growth, the oil price slump, the eurozone’s continuing woes, and lots of other things that keep central bankers awake at night. Thanks to all that, homeowners were served up the opportunity to take out some very cheap mortgages. The mood seems to have shifted for interest rates though. Hints are being dropped by Bank of England officials that its ratesetters will have to start considering raising interest rates at around the start of 2016.
As an interest rate rise draws closer, banks and building societies will face slightly higher costs for their own funding on the money markets and with demand for fixed rates high, they are likely to start raising rates.
Should I look at a remortgage?
A remortgage is where you take out a new mortgage on a property you already own – either to replace your existing mortgage, or to borrow money against your property. The main reason that you might want to remortgage is to save money. Other reasons may include;
- Your current deal is about to end
- You want a better rate
- Your home’s value has gone up…a lot
- You’re worried about interest rates going up
- You want to borrow more
- You want a more flexible mortgage
There can be a number of reasons why a re-mortgage may not be suitable for you, these could include where your mortgage balance is very small or you are currently tied in to a deal where there is large exit fee. The amount of equity you have in your property is also a major factor on the rate you will be able to get and therefore what money you can save.
We would always recommend speaking to a qualified mortgage advisor about your options. If you are interested in speaking to someone about your mortgage please contact our office and we can put in touch with one of our trusted partners.
Source: www.moneysavingexpert.co.uk / www.thisismoney.co.uk