Homeowners considering a remortgage, home movers, and home buyers have been encouraged to pay close attention to the warnings of interest rate increases. If they don’t, they will miss out on the current low interest rates and the possible savings that could be found by borrowing now on a remortgage or mortgage. Experts have been conflicted on when the Bank of England will increase their standard base rate, but all have agreed that the rate will indeed be changing, and sooner rather than later.

The Bank of England Governor, Mark Carney, has remarked that British households should be preparing for higher interest rates. By remortgaging, homeowners can be certain of taking advantage of the current deals being offered by lenders, some of which have historically low rates.

Those homeowners that have had their current mortgage deal end and have moved to their lender’s standard variable rate (SVR) are in the most danger of being surprised by an interest rate hike. Lenders will not have to wait until the Bank’s rate regulators make a change before they raise their SVR and do so with little warning.

Mr. Carney explained the Bank’s position on informing about the possibility of an interest rate increase even if it is not a certainty, he said, “If we think there is a prospect, a possibility – that’s a possibility not a certainty – of rate rises, then that is far, far better to let the British people know so they can prepare.”

It is thought there are hundreds of thousands of homeowners that will be in a vulnerable state when interest rates increase. In an annual survey from last December, it was revealed that 480,000 households could be at risk of defaulting on their mortgage if their repayments increased by 2%.

The demand for remortgages has grown with most securing fixed rates to avoid rising interest rates. This trend is expected to continue as the warnings for rate hikes continue.