Rising inflation is pushing many UK households to turn to purchasing many items with credit cards and obtaining remortgages on their homes simply to afford their current lifestyles. Housing experts are urging those families who are in homes to consider a remortgage if they have not already done so. Interest rates remain at all-time lows and lenders are offering deals with fixed rates which are exceptionally low. Those who are currently on an SVR type loan could possibly switch to a fixed rate deal and save money each and every month on the cost of the mortgage.

Inflation has reached 2.7% which is far and beyond the Bank of England target rate each month of 2.0%. Rising prices on everyday goods and services is creating more strain each week on the household budget. This in turn is forcing many to turn to using credit cards for purchases not typically placed on credit. It is also pushing people to seek other cost saving measures such as remortgage.

Many are discovering remortgage for the first time and are finding it possible to save money each month by cutting the cost of the monthly mortgage. It has also been quite a valuable find due to the amount of home equity which is accessible through remortgage.

Opinions vary regarding the current state of the economy, but most agree remortgage offers the real possibility of cutting cost for a household budget.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, commented on the current state of the market, saying: “May’s money and credit figures indicate that the economy is faring worse than the upbeat business surveys used by the MPC’s hawks to build a case for raising interest rates soon.”