Is a Variable Rate Deal a Better Option Now for Remortgage?
Variable rate loans are ones in which the rate is attached to the base rate. If the base rate remains low so does the loan rate. As the base rate rises, so does the loan rate. Historically low variable rates are available right now for borrowers to take full advantage of. These rates are available for significant lengths of time also, such 5 year and 10 year loans. To think that an incredible rate is available for a decade at a time is something that works for most borrowers budgets.
When considering a remortgage right now, you could sit on a standard variable rate and wait for rates to move up. If you don’t take advantage of the deals available, the ones in the future won’t be as cheap as the rates that you can get right now. However, there are some that are under the impression that a variable deal is a better option for remortgaging. Popular thought is that the Base Rate will rise slowly rather than in sharp increments. Therefore taking advantage of a variable deal would allow them to continue to take advantage of low rates. A traditional tracker mortgage could be a good fix for many people. The rates are still good and if Base Rate does increase quicker than expected, early repayment fees to a different lender will be minimal. This should enable you to be very comfortable with low monthly repayments.