Remortgage Borrowers Taking Advantage of Lender Incentives
The possibility of a rate rise looms over the UK housing market and the days are winding down to apply for remortgage. Many lenders are currently taking advantage of the time and offering special discounts and rates on administration fees. Borrowers are now able to check out a range of remortgage options before coming to a conclusive deal which suits them best. Rumors of a hike in interest rates are being taken to heart as many borrowers are counting down the days until the August meeting of the Monetary Policy Committee.
Borrowers are taking advantage of many deals which are being offered by well-known lending institutions just days before the Bank of England monthly meeting which could result in the next hike in the standard base rate. Such an increase would immediately lead to higher interest rates for anyone in search of mortgage lending.
The current standard base rate is 0.5% and has been held at this level since November of last year when the rate was increased from 0.25%. The inflation rate had been escalating and in an effort to regain control of it, the Bank of England increased the rate 0.25%.
Those interested in remortgage have been urged to apply quickly in order to allow enough time for lenders to get through all applications in time. The possibility of missing out on the historically low interest rates is now a realistic issue. Lenders of all sizes and types are now offering remortgage deals featuring not only low interest rates, but longer terms as well.