The Bank’s standard base interest rate has been forecasted to rise sometime late next year, however things in the global market can change and despite the actions of the Bank of England, borrowers could face higher interest rates. Should the swap rates, the interest rates lenders charge one another for borrowing, become more expensive then that cost will be passed on to borrowers. Due to the weakness in global economic markets, that could happen as early as spring of next year say experts.

The warnings of higher interest rates have families concerned about meeting the demands of higher mortgage repayments on their household budget. According to a report from Aviva, the fear about rising mortgage rates has increased by 7%. Mortgage interest rate increases is listed within the top three financial concerns for more than 25% of the population.

A survey from YouGov for the Council of Mortgage Lenders reported that more than 25% of homeowners believe they will be facing difficult financial situations when mortgage rates increase.

Aviva reported that the average family home value is £244,100 which is the highest value ever recorded in their Family Finances Report data. The survey involved 24,000 polled participants.

Remortgaging while interest rates are low can protect against rising interest rate offerings from lenders. Currently the rates are very attractive with some being the lowest seen in many years. By securing a remortgage deal, a homeowner could both secure a low interest rate on a long term but also release cash to help pay down debt and pad the family household budget.