Last week Halifax notified brokers that they would be increasing their interest rates on remortgage deals. It is expected that others will soon follow. Borrowing has been in high demand and the rate increases could be a sign that lenders are reaching their limit on cheap borrowing. Demand will likely continue to be strong even with slightly higher rates. However, it could also be a sign that lenders are seeking to completely escape the bottom level rates that have been available for months now that the pandemic is coming under control.

Halifax is not likely to be the only lender to increase their rates. Others will surely follow and that means that homeowners will be missing out on the lower rates that were available just last week. Only a slight move in the interest rate can amount to hundreds of pounds expensed out of the family budget. 

It is certainly the time to get serious about securing a remortgage. Homeowners that have come to the end of their mortgage and were moved to the lenders standard variable rate (SVR) are highly encouraged to shop as they could be paying almost double or more than if they secured a fixed rate remortgage. Also, they should consider that if lenders are raising rates on remortgage deals, then they could certainly be ready to push their SVR upward as well.

Shopping online for a remortgage is quick and simple and can reveal to homeowners what savings are available. Rather than pay more than necessary, shopping for a deal could be the answer to saving money. The investment of a few minutes shopping online with remortgage brokers or lenders could result in substantial savings, and doing so sooner rather than later is definitely a good strategy now that lenders are raising rather than lowering rates.