There is now even more of a reason for homeowners to get familiar with their current mortgage deal.  Experts have been warning homeowners that they should learn all they can about whether their current mortgage deal should result in an aggressive pursuit of a remortgage.  This is due to the fact that many lenders have given notice that they will be raising their standard variable rates.

The rising standard variable rates are being blamed on the increasing costs of lending.  Those homeowners that have had their current deal end and have not remortgaged are moved to their lender’s variable rate.  The intended increases could amount to substantial increases in homeowner’s repayment amounts.

Now it is being announced that homeowners have much more to worry about.  Some with trackers are facing increases despite their mortgage deal being linked to the current standard base interest rate set by the Bank of England which hasn’t increased.  This is due to an agreement in some tracker deals that with a notice the rate can change even if the linked rate does not.

Ray Boulger with mortgage broker John Charcol, said, "Now that it looks like interest rates are going to remain low for some time, lenders have a new incentive to try to mitigate long-term loss-makers like these mortgages.”

That means that homeowners that have a tracker deal will need to pull out their paperwork and review if they have such a loophole in their agreement.  If so then a remortgage would be the escape from possible increases in their mortgage repayments.