Homeowners New Year Resolution to Keep
Homeowners are facing rising interest rates in the New Year. Rather than taking on more expensive monthly repayments, getting a new low rate deal is a possibility. Shopping around for a new deal is easier than ever before due to the Internet. Websites from brokers and lenders offer quick quotes to homeowners with no obligation. After a few quick answers, a quote will be offered.
While the interest rate set by the Bank of England’s Monetary Policy Committee (MPC) is not expected to rise in the first half of 2015, lenders are expected to increase their interest rate offerings. There is a possibility that swap rates, the cost lenders charge one another for borrowing lendable funds, will increase. That cost will be passed on to customers. The global banking market therefore is going to make it more expensive to borrow money even if the MPC leaves their standard base rate unchanged.
Those homeowners that have had their current mortgage deal end and have moved onto their lenders standard variable rate (SVR) should be aware that they are at risk to face higher repayments. Lenders have had their SVRs low and that has offered homeowners moments to relax rather than hurry to remortgage, but that could be coming to an end this year. Seeking out a remortgage while rates are low could be the best resolution to make and keep to make this a very happy New Year.