Homeowners are being encouraged to shop for a remortgage. By shopping online, quick quotes could be obtained to discover possible remortgage offers. Currently, despite interest rates being increased twice, the interest rates are attractively low. More so due to the fact that experts forecast many more possible interest rate increases this year and next year. For homeowners, remortgaging is an opportunity to build a safety net for their financial health rather than face higher costs with their property loan.

The interest rate is basically what determines the cost of borrowing. There can be other fees associated with a mortgage, but the interest rate is the main factor in determining the cost of borrowing as a homeowner. By seeking out the lowest interest rate possible, the borrower is obtaining a more affordable rate and thus saving money versus paying on a higher rate. All in all, the interest rate matters and the goal is to obtain a low interest rate.

The Bank of England’s Monetary Policy Committee (MPC) has voted to increase the standard base interest rate in the last two meetings. The first was in December which moved the 300 plus year historic low rate of almost zero at 0.1% to 0.25%. The next meeting was held in February and the rate was increased to 0.50%. In just a few months the rate moved from 0.1% to 0.50%, and the next meeting could see the rate increased to 0.75% or higher.

With a remortgage a homeowner could secure a low interest rate that would guard them from being impacted by rising rates that are forecasted to occur and as early as 17 March.

A fixed rate remortgage locks in the interest rate for the duration of the term chosen such as a 2-year or 5-year deal. Currently the choice of a fixed rate remortgage is very popular among homeowners remortgaging.

Homeowners have reported in polls that remortgaging can be confusing, but it doesn’t have to be at all. One of the biggest misconceptions is that the homeowner will be paying higher repayments or more money. There are specific reasons a homeowner could take on more debt, and one could be to secure funds to make improvements to the home or for another purpose. In turn, if the money was used for the right improvements, the value of the property would increase.

Homeowners paying higher repayments could occur when the homeowner’s mortgage term ends and the interest rates they could choose from are higher than they were when they took out their previous deal. That will likely be the case for homeowners waiting to remortgage rather than choose a deal now before rates increase in the near future.

For those that would like to determine what opportunities are available with remortgaging, it is easy to shop online and get quick quotes. The homeowner could then compare what offers and savings are available. Of course, it should be a consideration that the interest rates of today could soon disappear and be replaced with higher ones, which is why experts are encouraging homeowners to shop for remortgages sooner rather than later.