Many experts have commented on the latest cut to the nation’s base interest rate from 0.5% to a new historic low of 0.25%. There is much agreement within the UK housing market that the new low will create massive savings for homeowners with variable rate mortgages and disappointment for savers looking to make interest from savings accounts. Among those affected by lowering the base rate, remortgagors are now able to obtain a rate even lower than in previous months.

Nothing affects mortgage payments more than the level of interest rate. Even the slightest change in interest rate level can either inflate a mortgage payment or make it possible to save hundreds of pounds per month. The latest cut in interest rates will most certainly achieve the latter.

Homeowners have been on the fence regarding a decision to proceed with the remortgage process or not. Uncertainty of the future of the market, both short term and long term, has created sentiment synonymous with the outcome of the Brexit vote itself. This sentiment has led many to place decisions regarding their mortgage and ultimately financial future on hold for now, whether that involved moving home or remortgaging.

Remortgagors can now take advantage of even lower interest rates and gain access to valuable home equity at the same time. Those homeowners sitting on the fence have now seen the interest rates drop. Many experts see this as a perfect time to remortgage. Interest rates could be held at this level for some time into the future.