If you are a homeowner then you likely have been wondering if it is time for you to remortgage and if you haven’t been thinking that then perhaps you should. There are many benefits to be had for a homeowner that finds a new deal, and the most likely one is securing a low interest rate with a fixed remortgage. Some experts believe the Bank of England’s Monetary Policy Committee (MPC) could hold off putting any increase to the standard base interest rate, but there are still others that say we could see at least one increase by the end of the year.

Considering that the first increase in years occurred in the last quarter of 2017, it would not be a surprise to many if it happened again around the same time. That could push the interest rate up to 0.75% which is three times the level of 0.25% seen during Summer 2017.

Experts encourage homeowners to consider a remortgage before another rate hike occurs. Yet, it is for many confusing as to when they should seek out a new deal. While each homeowner has unique needs for a remortgage, there are three distinct times in which one should consider a remortgage.

When a homeowner’s mortgage deal is coming to an end or has ended it is an ideal time to remortgage. Without a new deal the lender will move the homeowner’s loan onto their standard variable rate or SVR. This is a risky rate and often higher than a remortgage that could be found. A SVR is risky because the lender can change the rate with little warning to the homeowner and that could cause them to pay higher repayments unexpectedly.

Another time a homeowner might consider a remortgage, even if their current deal is not soon to end, is if there are very attractive deals being offered by lenders. For some homeowners the ability to remortgage for a long term at a low interest rate is worth paying any penalty fees for ending a deal early. It offers a safety net against strains to a household budget should interest rates rise, and even if they don’t it could offer peace of mind.

Finally, another time in which considering a remortgage could be helpful is when there are warnings about impending increases to the Bank’s interest rate. When the Bank of England’s MPC increases the rate, lenders will quickly remove their lowest deals from offer. Rates will cease to be as attractive after a rate hike as they were before the increase. If saving money through obtaining a lower interest rate is helpful to a homeowner’s financial budget, then remortgaging while rates are low would be smart.

There are many reasons for a homeowner to remortgage, and the reason or reasons one remortgages could be completely different from another. It could be helpful for every homeowner to consider a remortgage, shop around for what is available, and determine if now is the right time for them.