As one month closes out after another in 2016, we will be drawing nearer to the month that actually sees the Bank of England increasing the standard base interest rate for the first time since March 2009. With that rate change will come changes for households as research shows that there are few homeowners that are actually ready for higher repayments. Remortgages are not on their mind as they have grown accustomed to their lender’s low standard variable rate (SVR).

Unfortunately most homeowners that have had their current mortgage deal end and have been moved to their lender’s SVR are unaware that they could quickly face a rate change. Lenders historically give little warning when they raise their SVR and homeowners will be forced to pull more money out of their household budget to pay their mortgage payments.

Waiting to secure a remortgage once rates increase could have homeowners missing out on the very attractive low rates currently offered. That could mean a loss of savings that would have been locked in for several years.

Remortgages not only have the potential to save money for homeowners, but to offer equity cash release. The ability to take out equity and transform it into cash while securing a low interest rate is a great opportunity for many homeowners. The cash can then be put toward debt payoff or debt consolidation as well as used toward a major purchase of the homeowner’s choice. Some homeowners use their cash release to refurbish their home or transform a larger home into a dual home with a new rental area income producer.

Interest rates are due to increase this year according to experts and while lenders are still competitive and offering low interest rates homeowners and home buyers could have much to gain by taking advantage of the current lending market.