Remortgage brokers and lenders are expecting a strong boom in the lending market from homeowners looking to take advantage of low interest rates before further rate hikes. The Bank of England’s Monetary Policy Committee (MPC) shocked many experts by choosing to raise the interest rate last Thursday from the historic low of 0.1% to 0.25%. The rate increase came at a time when inflation was climbing rapidly, but also in the midst of another large outbreak of Covid-19 which was thought to put off a vote to hike the rate. The increase took many by surprise and left homeowners without an opportunity to take advantage of the lowest interest rate remortgages.

It has been reported that a large number of homeowners are considering paying penalty fees to end their mortgage deal early to remortgage rather than face higher interest rates. 

That could be a smart choice as experts have encouraged all homeowners to shop for a remortgage in an effort to secure a lower interest rate. Many could save hundreds of pounds a month with a lower interest rate.

Those that have had their mortgage deal end and did not remortgage were moved to their lender’s standard variable rate or SVR. An SVR could, according to experts, be at an interest rate double or more of what is available with a remortgage. Rather than pay more than necessary, homeowners could shop for a deal.

Shopping online is easy and fast. Going one by one through lenders could be easy, or homeowners could shop online with a remortgage broker and save time. Since brokers work with many lenders, quotes from their website will be offers from various lenders versus one. Brokers also often times have exclusive deals from lenders not offered to the general public. Their expertise, the fact many lenders offers are available from one source, as well as possible exclusives, it could be a time saver to shop with a broker as well as a smart strategy.

Experts believe there will be more interest rate hikes in early 2022, and shopping for a remortgage to beat those increases should be a priority for almost any homeowner before the next MPC meeting at the start of February which is less than sixty days away.