Many homeowners are shopping for a fixed rate remortgage before the Bank of England’s Monetary Policy Committee increases the standard base rate. It has sat at a historic low of 0.5 per cent for two years and with news that a change is due, shopping for a safe fixed rate has begun. Homeowners have turned out in high numbers to apply for a remortgage in the last few weeks.

The latest meeting in February left the rate unchanged, so many homeowners that have yet to secure a remortgage were relieved thinking that this would allow them to find a great deal. However, once the shopping for a remortgage began many saw fixed rates being pulled and interest rates increasing. All of this despite the Bank leaving the base rate unchanged.

The reason is that there is such a high demand for remortgages and that the lenders are passing on a cost they are enduring to consumers. Swap rates for lenders have increased. The swap rates are the interest rates that lenders charge one another for borrowing. As the rates increased for lenders they increased the rates offered to customers passing along their cost.

Homeowners have to consider more than whether the Bank has or has not increased the standard base rate when choosing to move now or later to get a fixed rate remortgage. Waiting could mean thousands of pounds over the course of a loan. Deals available now may not be available weeks or days ahead. Remortgages are in high demand but many lenders are still trying to be competitive and grab good borrowers, so deals are still to be found. If a homeowner is considering a move it may be a good idea to see what a remortgage could do for their situation and they should do it now rather than later according to experts.