Uncertainty within the UK housing market in regard to the future of the bank rate increase from the historic low of 0.5% is creating quite disparity in the opinions of how to handle current home ownership decisions. Some economists close to the housing market are urging house owners to consider remortgaging now before any quick changes in the interest rate take place, whilst others are suggesting a more relaxed approach of waiting for a potentially more opportune moment.

Remortgaging now into a new financially beneficial product could possibly be a favourable move for many looking to make a change to their home mortgage. Although many economists are suggesting the bank rate will remain at its current level, lenders are going at each other in the strongest way and fighting for business which could help them start out the year on the right foot.

Ben Riley, a director with First Mortgage, commented on the possible benefits of moving now into a new product, saying: “A lot of people are going to get a shock. Traditionally people used to take out mortgages with a rate fixed for two, three or five years, and know that at the end of that period the rate would go up, but for the past few years, with rates going down, a lot of people are sitting on lenders standard variable rates.

“And if the Bank of England base rate rises from its present rate of 0.5%, even if that’s only by half a percent, that doesn’t mean the public will only see their mortgage payments increase by that. Lenders could review their rates and increase them by 1%, 2% or whatever they want - and they have been waiting for an opportunity to do so.

“If you are on a variable rate mortgage right now I’d encourage you to try and fix the interest rate to a level that you are happy with, before rates rise.”