Remortgage sooner than later as experts predict the only way is up
News yesterday saw the Bank of England base rate remain at its historically low of 0.5 per cent for the 39th consecutive month, again stirring up the homeowner’s remortgage conundrum.
Last month the International Monetary Fund floated the idea of cutting the base rate further to 0.25 per cent or even zero in a desperate attempt to salvage the economy from a double dip recession. While the general assumption is that any decrease in the base rate would result in lower mortgage rates, according to market experts, reality is a little different.
Figures suggest while the two million homeowners on tracker mortgages would see repayments fall, the remainder are likely to in fact suffer as lenders would have its balance sheets squeezed even more. Standard variable rates (SVR) and mortgage rates are on the up with little to suggest any sort of U turn.
The news could encourage homeowners to start considering their remortgage opportunities.
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Content correct at time of publication