Is now the time to remortgage?
Over the past six months the Bank of England has hiked up interest rates on two occasions, taking the base rate of 4.5 percent to 4.75 percent, and more recently to 5 percent. On top of this, many experts are predicting a further rise in the interest rate in the New Year. With this in mind, many people are now wondering whether it is time to start looking into remortgaging in order to get a better deal on their loan or in order to try and go for a fixed rate so that further interest rate rises will not affect them financially.
A wide range of lenders are offering remortgage deals to consumers at the moment, and those thinking about looking for a more affordable mortgage deal are advised to make sure that they take the time to compare a number of packages and mortgage types before making a decision, so that they can see what will suit them over the longer term. Some mortgage providers are offering cash back and payment of legal fees to those that switch their mortgage, so look out for benefits such as these too.
This said, the most important thing to look at when comparing remortgage deals is the rate of interest that the lender will be charging. If you decide to go for a fixed rate mortgage when you switch you are likely to be paying a higher interest rate than you currently are if you are on a variable rate mortgage. However, this also means that if the interest rates rise again in 2007 your repayment will remain unaffected, so you won’t have to worry about facing financial difficulties through being unable to meet any further rises in repayments.
Those looking to switch their mortgage can compare a wide range of deals online, where you will find a vast array of mortgage providers offering some very tempting remortgage deals.
Alisdair Milton
1st January 2007
More Information:
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- Re-Mortgaging – The How and Why
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- Why Does The Interest Rate Of Your Mortgage Change?
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- The True Cost Of Your Mortgage
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