Remortgaging now could save you quite a bit of money, especially if you have an adjustable rate mortgage. Fixed rate often costs less. It is also more reliable. Your payment won’t keep changing on you. When this happens it often creates financial hardship. It’s better to know exactly what you’ll be paying so you can put that in your budget and so you can make sure you always have that amount set aside to pay your mortgage with.
Key Takeaways:
- While many people in England have taken advantage of record low fixed-rate home loans to remortgage, these deals are expected to soon expire as base rates increase.
- The increase in cost of fixed-rate home loans is a response to Bank of England’s indication that cost of borrowing will likely rise in the upcoming weeks.
- While the increase in rates vary on average between 0.2-0.25 percent, the rate increases for 5-year deals, which are typically targeted at remortgagers, are higher.
“still have time – just – to apply for and fix their mortgage before the interest rate decision is announced”