Homeowners that are at the end of their mortgage deal and have converted to their lender’s standard variable rate could very well benefit by a remortgage. However, according to recent research on behalf of First Direct many may not be assertive enough to take advantage until the best of times to remortgage are passed. Instead, they are letting remortgage deals slip away while the rate is low. It will not be until a rate hike and the best deals are gone that most will start to consider a remortgage.

The research showed that most homeowners are going to be shocked by the change to their payment that a rate change will cause. Responders were more concerned with a particular amount of an increase than a percentage rate. Only 10 per cent said they would remortgage if there were a 1.0 per cent interest hike. The largest number said they would remortgage if there were a 3 per cent interest hike. Yet, 41 per cent of those considering a remortgage in the next 12 months said an increase of £100 would push them to remortgage. Of those stating they had no intention of remortgaging, 36 per cent stated they had no knowledge of their current mortgage’s interest rate level.

Richard Tolchard, senior mortgage product manager at First Direct, says: "It’s easy to see why homeowners enjoying the benefits of a low variable rate might be unwilling to volunteer for an increase in their monthly payments by moving to a fixed rate now.

"The upside is that those who move now could be laughing in the end. The ‘wait and see’ homeowner looks set for a payment shock when base rate does move, with a 1% increase in variable rates driving an average monthly payments rise of over £112 per month. The best fixed rates are likely to be long gone when this happens."