The Mortgage Loans Help

Once again, it seems that interest rates are set to rise and increase the cost of mortgages, putting homeowners under even more financial pressure.

Chief economist for the Bank of England, Spencer Dale, voted for a 0.25% increase in base rate, but was outnumbered by other members of the Monetary Policy Committee who put their backing behind the low level of 0.5%. Mr Dale was unhappy with the result of the vote and feels that there could be further impact on lower income families, not to mention the rise of inflation which could damage the economy greatly.

Of course, it is incredibly difficult to predict when interest rates will rise or fall and those wanting to purchase homes are in a precarious position. Low tracker mortgages and standard variable rates are currently at a differential of 3% or less, making it a less than attractive option when switching mortgages. However, with the economy in its weakened state, interest rates are probably going to increase in smaller amounts, if buyers are wanting to avoid higher mortgage rates, it would be wise to go for a five-year fix – otherwise they could be looking at remortgaging as interest rates peak.

If you are a homeowner concerned about interest rates, the best thing to do is probably to consult a professional broker and apply, most mortgage applications are available for between three and six months and then you will find out if you can remortgage or not, and how much it will cost. It is advisable to look into two-year fixes as opposed to a five-year fix – the fees are much lower, typically between 2.99% and 3.18%.

It is worth remember that it’s doubtful interest rates are going to soar and then crumble again in quick succession, with a short term fix you can expect to remortgage two to three years down the line when the Bank base rate alters to a greater percent – possibly 5% or higher.

If you are looking to remortgage then our specialist team at remortgage.com can help.