Remortgage lending is expected to see a surge in the coming months due to homeowners seeking to secure a low interest rate. The Bank of England’s Monetary Policy Committee (MPC) could, according to experts, increase the standard base interest rate in May. Should the committee vote by majority to increase the rate, it will likely be an increase of 0.25% bringing the rate to 0.75%.

Homeowners that have been moved to their lender’s standard variable rate (SVR) when their mortgage deal ended, will be expected to start taking action and seeking a remortgage. It may have been comfortable for some homeowners to await any changes in interest rates when the rate was historically low as it was before November 2017. Prior to the first rate change in years which happened last November, the 0.25% base rate allowed those on a SVR to rest comfortably without a remortgage. However, once the first rate change amounted to a doubling of the rate to 0.50%, remortgage lending picked up.

Now that another rate increase might occur, homeowners are expected to show even stronger demand for a remortgage, particularly ones with fixed rates and longer terms. The opportunity to secure an interest rate for years to come is an opportunity few will be able to resist.

Experts are encouraging homeowners to shop around for a remortgage to determine if it would be helpful and offer security for their financial future. There are attractive deals available and if interest rates are indeed on the rise, then there might not be a better time to shop for a remortgage than now.