Homeowners are seeking the opportunity to remortgage as a path to escaping higher interest rates. According to several reports, more homeowners with many months left in their current term are in search of remortgages. Rather than face the interest rates that will be available when their terms expire, they are instead choosing the opportunity to remortgage now and obtain an interest rate level that could be cheaper. 

Ending a mortgage term early could involve paying penalty fees. Those fees could be seen as simply a small obstacle to the ability to remortgage with a low interest rate of today which could offer financial relief. With a fixed rate deal, a homeowner could lock in the interest rate and avoid rising rates during the term of their new deal.

Ever increasing interest rates throughout the year could actually occur as inflation continues to grow. The Bank of England’s Monetary Policy Committee (MPC) has increased the standard base interest rate during the last three consecutive meetings. The next possible meeting increase could come on 5 May.

The rate increases have taken the Bank’s base rate from 0.1% in December to 0.75%. Another rate increase could take the rate to 1.0% or perhaps higher. While the rate increases have been quick and have certainly had an impact, there are still attractive offers from remortgage lenders and remortgage brokers. The offers are certainly more attractive as they are currently than they could be should another increase by the MPC occur.

Experts are encouraging all homeowners to shop for a remortgage. It could offer insight to possible savings available. By shopping online the process is simple and fast. Quick quotes could be in hand in a matter of minutes to compare and narrow down options.

With inflation causing consumers to pay more out of pocket and fuel costs causing financial concerns for households, a remortgage could be the answer to offer some savings and relief. Rather than pay more, shopping for a remortgage sooner rather than later is a smart strategy for any homeowner. Whether action is taken now to remortgage or later, having quotes and information in hand offers peace of mind as to opportunities available.