Rates are potentially going to rise again soon and that is pushing many to obtain a new mortgage loan on their home through remortgage. What is happening with remortgage currently has been expected by many close to the housing market. Ever since the Bank of England began speaking about the possibility of a rate rise in May, lenders have not had a chance to raise their heads. Home owners are grabbing up remortgage loans with vigor and that trend is not expected to slow down any time soon.

Rates are historically low and they will stay low for the unforeseen future, according to many housing specialists. Even if the Central Bank increases rates more than once rates remain low compared to interest rates seen over time. Currently, the standard base rate is resting at 0.5%. This is double the rate of 0.25% seen before the month of November last year. Rates increased 0.25%, or doubled, leaving the current rate at 0.5%, which is still quite low.

Housing experts are recommending all home owners take a look at what is happening now in the market. Over the past few weeks, lenders have started the inevitable process of raising interest rates on the lowest rate packages. This has been done quietly without raising any huge red flags. Lenders have to go through this process because swap rates have been increasing. Swap rates are rates which banks accept from each other as they loan each other money.

Although interest rates are a bit higher than they were before the November hike, they remain at historic lows. Housing experts cannot stress enough how important considering a remortgage is at this time. It could be a solution to a financial burden which has been present for years.